Supervisory Review Process and ICAAP under Basel’s Pillar 2
The Supervisory Review Process (SREP) and the Internal Capital Adequacy Assessment Process (ICAAP) together ensure that banks maintain capital commensurate with their risk profile and operate above minimums using forward‑looking, proportionate, and well‑governed processes, with supervisors empowered to review, challenge, and intervene early where needed. Objective of Pillar 2 Pillar 2 aims to ensure banks…