The EBA publishes today a discussion paper on a template for recovery plans aimed at encouraging discussion and at gathering stakeholders’ opinions at an early stage of the process. The discussion is open for comments until 15 June 2012.
This discussion paper presents some preliminary ideas on what the key elements of a recovery plan should be. To this end, it proposes a possible “template for recovery plan” which aims at covering the essential issues that should be addressed in a recovery plan.
The inputs from the discussion process will assist the EBA in the performance of its role according to Article 25 of the EBA Regulation.
Article 25 of the EBA founding Regulation (Regulation (EU) 1093/2010) assigns the Authority the task of contributing to and actively participating in the development and coordination of effective and consistent Recovery and Resolution Plans (RRPs).
In particular, the EBA may identify best practices, and draft regulatory and implementing technical standards, with regard to the development of RRPs. The exact role and responsibility of the EBA are to be specified in an EU legislative act. In this regard, the forthcoming European Commission proposal for EU legislation establishing a framework for the recovery and resolution of credit institutions is expected to detail the nature and content of RRPs, as well as to clarify the scope of their application, and to further define the role and powers of the EBA and national competent authorities (NCAs).