ICAEW’s guidance provides a flexible framework for both internal and external assurance on banking regulatory ratios.
In May 2017, following positive support for our exposure draft, ICAEW's Financial Services Faculty has finished and published a technical release Banking regulatory ratios: ICAEW assurance framework
In 2014 ICAEW was asked by the Prudential Regulation Authority (PRA) to consider how assurance on bank capital ratios and risk-weighted assets might support confidence in these important measures. We published a discussion paper in July 2015, Reporting on regulatory capital: choices for assurance.
Banking regulatory ratios: ICAEW assurance framework
The framework provides guidance to internal and external auditors on how to design an assurance engagement on regulator ratios and deliver it in a robust way.
Please read and find out more:
Exposure draft and feedback statement
Regulatory capital ratios are key measures of the strength and resilience of banks for regulators, investors, creditors and other stakeholders. Our October 2016 exposure draft set out a flexible framework for assurance which can be used by internal and external assurance providers and banking institutions to assist in scoping and performing assurance work.
We do not propose any requirement for banks to obtain assurance.
A feedback statement was also published alongside this exposure draft which sets out the key messages from the consultation and how we responded.
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Resources
- Basel Committee on Banking Supervision - Basel III homepage for more information on their capital guidance, risk management and disclosure framework.
- The Capital Requirements Regulation (CRR) - The main legislative text and background information for the European capital rules as set out in the CRR.
- The Prudential Requirements Regulation Authority Rule Book (PRA rule book)
- The EBA's regulation and police pages - Contains guidance, technical standards and recommendations on a number of relevant topics (ie Pilar III, credit risk)
- Further reading
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