BANKS RESPONSIBILITIES FOR INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP) EXPLORATORY ANALYTICAL STUDY OF A SAMPLE OF THE IRAQI PRIVATE BANKS IN PRACTICE

Abstract

The capital adequacy and solvency in the banking sector of the basic elements of durability and strength of the banks and financial centers of interest to the bank management and the regulatory and supervisory bodies in the world. And this research to test to assess the capital adequacy to face risk according to the policies and procedures of internal capital adequacy (ICAAP) and to define the responsibilities of Iraqi banks in the application of ICAAP and is reflection to support abilities their financial positions and develop their competitive abilities .As well study the risks that can face the bank and measurement these risks to assess the bank's ability to respond through the capital adequacy . To selected a sample composed of three banks according with standard Basel capital adequacy for the period 2006 til 2010, which are the Iraqi banks Middle East Iraqi investment, Iraqi National Bank and Credit Bank of Iraq from private banks. Nine indicators of adequacy of bank capital have been used which are : capital to deposits, capital to total assets, capital loans, capital to risky assets, capital free to risky assets, capital free to assets working, capital investments, capital to liabilities, capital to risk-weighted assets.