Within the Internal Capital Adequacy Assessment Process (ICAAP), the economic perspective evaluates whether an institution has enough internally available capital to absorb the risks identified through its own economic risk assessment. The results are used to manage economic capital adequacy and to align internal capital resources with the institution’s risk profile.
Passende Formel
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.