ILAAP (Internal Liquidity Adequacy Assessment Process) · Concepts

Roles that need it

ICAAP (Internal Capital Adequacy Assessment Process)The ICAAP is a bank's own process for identifying its material risks and assessing whether its internal capital is adequate to cover them now and under stress over a forward-looking horizon. It is required by Article 73 of the CRD and is a key input to the SREP.
SREP (Supervisory Review and Evaluation Process)The SREP is the annual review in which supervisors assess a bank's business model, governance, capital and liquidity risks. It ends with a decision setting the Pillar 2 requirement, Pillar 2 guidance, liquidity measures and qualitative measures. In the euro area the ECB runs it for significant banks.
LCR (Liquidity Coverage Ratio)The Liquidity Coverage Ratio requires a bank to hold enough unencumbered high-quality liquid assets to cover its net cash outflows over a 30-day stress period. It must be at least 100% under the CRR and Commission Delegated Regulation (EU) 2015/61.
NSFR (Net Stable Funding Ratio)The Net Stable Funding Ratio compares available stable funding (capital and longer or sticky liabilities) with required stable funding (set by the liquidity and maturity of assets) over a one-year horizon. The minimum is 100%. It applies in the EU since June 2021 under CRR2.

Updated 31 Oct 2026.