ICAAP / ILAAP
For the financial system to be stable, institutions must have adequate capital and liquidity, and manage these levels effectively. It is thus crucial that they comply with supervisory requirements by establishing an Internal Capital Adequacy Assessment Process (ICAAP) to ensure capital adequacy and an Internal Liquidity Adequacy Assessment Process (ILAAP) to ensure liquidity adequacy.
Ensuring internal capital adequacy of less significant institutions (LSIs)

Supervisory assessment of bank-internal capital adequacy concepts and their integration into firm-wide performance and risk management processes ("ICAAP") – realignment
Further details on the liquidity transfer pricing systems
in German only