These Guidelines identify the minimum qualitative and quantitative indicators that institutions should include in their recovery plans. They have been developed within the framework established by the Bank Recovery and Resolution Directive (BRRD) for the recovery and resolution of credit institutions and investment firms.
The European Banking Authority (EBA) published today a consultation paper on its revised Guidelines on recovery plan indicators. While maintaining overall stability to the current recovery plan indicators framework, the revised Guidelines provide additional guidance on indicators’ calibration, monitoring and breaches notifications. The amendments aim at strengthening the quality of recovery indicators framework and contributing to effective crisis preparedness of institutions.
The main objective of recovery plan indicators is to help institutions monitor and respond to the emergence and evolution of stress. The EBA issued the existing Guidelines on recovery plan indicators in 2015 but decided to amend them based on practical experience acquired in recovery planning.
The revised Guidelines provide additional guidance on the calibration of thresholds of recovery indicators to ensure that recovery options are implemented early enough to be effective. The amendments also emphasise the importance of constant monitoring of recovery indicators and timely notification of their breaches to supervisors. Lastly, three new recovery indicators (MREL/TLAC, asset encumbrance and liquidity position) have been added to the minimum list of recovery indicators and one (cost of wholesale funding) has been removed.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 18 June 2021. All contributions received will be published following the end of the consultation, unless requested otherwise.
A public hearing will be organised in the form of a webinar on 15 April from 14:00 to 16:00 CET. The EBA invites interested stakeholders to register using this link.
The dial-in details will be communicated in due course.
In accordance with Article 9(1) of the Bank Recovery and Resolution Directive (BRRD), a recovery plan should include a framework of indicators established by each institution with the aim of identifying the points at which the escalation process should be activated and to assess what appropriate actions referred to in the recovery plan may be taken.
Under the mandate of Article 9(2) of BRRD, in 2015 the EBA issued Guidelines to specify the minimum list of quantitative and qualitative indicators for the purposes of recovery planning (EBA-GL-2015-02). Since the development of the Guidelines in 2015, significant practical experience in developing and assessing recovery plans has been acquired. Against this background, the EBA has concluded that, while limited amendments to its existing Guidelines are needed, it is necessary to introduce additional guidance on certain parts of the indicator framework.
The revised Guidelines are published for a three-month public consultation where the EBA is consulting only on changes to the existing Guidelines on the minimum list of qualitative and quantitative recovery plan indicators. There is no consultation on the text of the original Guidelines, which remains unchanged.
The EBA will finalise these Guidelines once the consultation responses have been assessed. Upon publication of the final Guidelines, the original ones on the minimum list of qualitative and quantitative recovery plan indicators will be repealed.
The European Banking Authority (EBA) published today Guidelines on recovery plan indicators. The Guidelines establish a common EU approach for developing the framework of recovery plan indicators, providing additional guidance on indicators’ calibration, monitoring and breaches notifications. The guidelines aim at strengthening the quality of recovery indicators framework and contributing to effective crisis preparedness of institutions.
The main objective of recovery plan indicators is to help institutions monitor and respond to the emergence and evolution of stress. The EBA first issued guidelines on recovery plan indicators in 2015 and decided to amend them based on practical experience acquired in recovery planning.
These Guidelines provide additional guidance on the calibration of thresholds of recovery indicators to ensure that recovery options are implemented early enough, so as to be effective. The Guidelines also emphasise the importance of constant monitoring of recovery indicators and timely notification of their breaches to supervisors. Lastly, the minimum list of indicators includes three new additional recovery indicators (MREL/TLAC, asset encumbrance and liquidity position) to the minimum list of recovery indicators and one of them (cost of wholesale funding) has been removed.
In accordance with Article 9(1) of the Bank Recovery and Resolution Directive (BRRD), a recovery plan should include a framework of indicators established by each institution with the aim of identifying the points at which the escalation process should be activated and to assess what appropriate actions referred to in the recovery plan may be taken.
These Guidelines have been developed under the mandate of Article 9(2) of BRRD. Since the development of the Guidelines in 2015 (EBA-GL-2015-02), significant practical experience in developing and assessing recovery plans has been acquired. Against this background, the EBA has concluded that, while limited amendments to the 2015 Guidelines were needed, it was necessary to introduce additional guidance on certain parts of the indicator framework. The 2015 Guidelines are therefore repealed at the same time as the publication of these Guidelines.
The European Banking Authority (EBA) published today its final Guidelines on indicators for the recovery and resolution plans of credit institutions and investment firms across the EU. These provide the minimum list of qualitative and quantitative indicators that institutions should include in their recovery plans and will function as triggers for the recovery plans, as prescribed by the EU Bank Recovery and Resolution Directive (BRRD).
The EBA Guidelines set the requirements that institutions across the EU should follow when developing their recovery plans. The minimum list that institutions should include in their plans comprises, both qualitative and quantitative, indicators grouped into different categories such as capital, liquidity, profitability and asset quality. Where relevant to the characteristics of the specific institutions, macroeconomic and market-based indicators are also included. These indicators will serve to identify the points at which appropriate recovery measures should be considered.
On top of the minimum list of indicators, the EBA Guidelines provide a list of additional indicators institution may want to use. The task of assessing recovery plans and their recovery indicators will be for the supervisory authorities, as they have to ensure that credit institutions have put in place appropriate arrangements for the regular monitoring of the indicators.
These Guidelines are addressed to competent authorities and will enter into force on 31 July 2015. Following the publication of the English version, the EBA will make available, in due course, the translations of the Guidelines in all EU languages. Within two months from the publication of the translated Guidelines, competent authorities shall confirm to the EBA their compliance status, which will be disclosed on the EBA website.
The BRRD is the EU Directive that requires credit institutions and investment firms across the EU to develop recovery plans defining the measures they would adopt to restore their long-term financial viability in distressful situations.
The Guidelines have been developed in accordance with Article 9(2) of Directive 2014/59/EU (BRRD) which mandates the EBA to specify a minimum list of quantitative and qualitative indicators for the purposes of recovery planning. These Guidelines complement a set of regulatory products related to recovery planning, which include: (i) the EBA draft regulatory technical standards specifying the information to be contained in the recovery plan; (ii) the EBA draft regulatory technical standards specifying the minimum criteria that the competent authority is to consider when assessing recovery plans; (iii) the EBA guidelines specifying the range of scenarios to be used for recovery plans.
The European Banking Authority (EBA) published today a consultation paper on its revised Guidelines on recovery plan indicators. While maintaining overall stability to the current recovery plan indicators framework, the revised Guidelines provide additional guidance on indicators’ calibration, monitoring and breaches notifications. The amendments aim at strengthening the quality of recovery indicators framework and contributing to effective crisis preparedness of institutions.
The main objective of recovery plan indicators is to help institutions monitor and respond to the emergence and evolution of stress. The EBA issued the existing Guidelines on recovery plan indicators in 2015 but decided to amend them based on practical experience acquired in recovery planning.
The revised Guidelines provide additional guidance on the calibration of thresholds of recovery indicators to ensure that recovery options are implemented early enough to be effective. The amendments also emphasise the importance of constant monitoring of recovery indicators and timely notification of their breaches to supervisors. Lastly, three new recovery indicators (MREL/TLAC, asset encumbrance and liquidity position) have been added to the minimum list of recovery indicators and one (cost of wholesale funding) has been removed.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 18 June 2021. All contributions received will be published following the end of the consultation, unless requested otherwise.
A public hearing will be organised in the form of a webinar on 15 April from 14:00 to 16:00 CET. The EBA invites interested stakeholders to register using this link.
The dial-in details will be communicated in due course.
In accordance with Article 9(1) of the Bank Recovery and Resolution Directive (BRRD), a recovery plan should include a framework of indicators established by each institution with the aim of identifying the points at which the escalation process should be activated and to assess what appropriate actions referred to in the recovery plan may be taken.
Under the mandate of Article 9(2) of BRRD, in 2015 the EBA issued Guidelines to specify the minimum list of quantitative and qualitative indicators for the purposes of recovery planning (EBA-GL-2015-02). Since the development of the Guidelines in 2015, significant practical experience in developing and assessing recovery plans has been acquired. Against this background, the EBA has concluded that, while limited amendments to its existing Guidelines are needed, it is necessary to introduce additional guidance on certain parts of the indicator framework.
The revised Guidelines are published for a three-month public consultation where the EBA is consulting only on changes to the existing Guidelines on the minimum list of qualitative and quantitative recovery plan indicators. There is no consultation on the text of the original Guidelines, which remains unchanged.
The EBA will finalise these Guidelines once the consultation responses have been assessed. Upon publication of the final Guidelines, the original ones on the minimum list of qualitative and quantitative recovery plan indicators will be repealed.