What is the difference between ICAAP and CCAR?

Except that one is for USA and other is for Canada?

  • $\begingroup$ I thought internal capital adequacy assessment process (ICAAP) was a requirement of Basel II and therefore also a requirement of USA banks. For example, here is a discussion of Citibank talking about their joint CCAR / ICAAP exercise: citigroup.com/citi/investor/data/p130307a.pdf $\endgroup$ – BKay Feb 8 '15 at 15:15

ICAAP stress tests are for internal capital or economic capital, which are requirements under Basel II pillar II. CCAR stress testing is for regulatory capital, which is also under Basel II. US regulators provide specific scenarios and risk factor shocks.


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