EBA欧洲银行-Discussion-Paper-on-Template-for-Recovery-Plans_16页_326kb

EBA Discussion Paper on a Template for Recovery Plans (EBA/DP/2012/2) Summary

Core Content of the Document

This document is a Discussion Paper (DP) by the European Banking Authority (EBA) on a template for recovery plans. It outlines the EBA's preliminary views on the key elements that should be included in recovery plans for financial institutions, especially in the context of EU and international regulatory efforts.

The EBA aims to foster consistency and convergence in recovery planning across EU member states. The template is not a binding document but serves as a guideline to help institutions identify essential elements and ensure that recovery plans are comprehensive, proportionate, and adaptable.

Main Objectives

• To elicit stakeholder feedback on the template and its approach.
• To assist the EBA in fulfilling its role under Article 25 of the EBA regulation.
• To align with the FSB's Key Attributes and the European Commission's consultation on recovery and resolution planning.

Key Elements of the Recovery Plan Template

The template is structured into three main chapters:

A. General Overview

• Summary of the plan: Key elements, changes since last update, and steps for finalisation/update.
• Description of the group/institution: Legal structure, main activities, and interdependencies.
• Internal governance: Process of plan development, approval, and decision-making in a crisis.

B. Core of Recovery Plan

• Recovery options/measures: Include recapitalisation, asset divestment, liability restructuring, and other extraordinary actions.
• Early warnings and triggers: Define quantitative and qualitative indicators that signal the need for recovery actions.
• Assumptions and scenarios: Outline stress scenarios (idiosyncratic, systemic, and combined) and assess their impact.
• Impact and risk assessment: Evaluate the financial, operational, and external implications of each recovery measure.
• Operational contingency plan: Ensure continuity of operations during recovery.
• Communication plan: Detail internal and external communication strategies during a crisis.
• Information management: Describe how information is managed and made available to supervisory authorities.

C. Follow-up

• Preparatory measures: Steps to ensure successful execution of recovery options.
• Areas for improvement: New assumptions, measures, and organisational changes.
• Corrective actions: Outline follow-up actions and their implementation timelines.

Key Views and Rationale

• Recovery plans are not forecasts but tools to assess the robustness and variety of recovery options.
• Scenarios should not be overestimated; they are used to test recovery options rather than to predict crises.
• Coordination among NCAs is essential for cross-border groups, especially to maintain confidentiality and ensure consistency.
• National legal frameworks vary significantly, so the template is intended to be flexible and non-binding.
• Recovery plans are institution-specific, and their content should be proportionate to the institution's size and complexity.
• The EBA is not a regulator but a facilitator, and its role is to promote best practices and support convergence across the EU.

Questions for Stakeholders

The document concludes with a list of 14 questions aimed at gathering feedback from stakeholders. These questions cover:

• Current status of recovery plan drafting and approval.
• Alignment of the plan with the template.
• Legal provisions and potential conflicts.
• Legal implications and binding effects.
• Comprehensive coverage of the template.
• Role of scenarios and assumptions.
• Identification of early warnings and triggers.
• Corporate governance arrangements.
• Consistency between group and entity-level recovery plans.
• Range of recovery measures.
• Confidentiality concerns.
• Ranking of recovery measures.
• Credibility assessment of recovery plans.
• Information arrangements for supervisory authorities.

Conclusion

The EBA encourages participation and feedback from stakeholders to refine the template. It is designed to be a guiding framework rather than a mandatory standard, allowing for national flexibility while promoting supervisory convergence. The template is expected to evolve through consultation and discussion, and it is not intended to replace national legal frameworks but to support their development.