This page describes how recovery planning looks in principle, as well as explaining which authority is responsible for it. There are also some downloads with explanations relating to the drawing up of recovery plans.
Articles 8 to 18 of the Federal Act on the Recovery and Resolution of Banks (BaSAG – Bundesgesetz über die Sanierung und Abwicklung von Banken), as published in Federal Law Gazette I 98/2014 (in German only), prescribe that credit institutions and groups of credit institutions are obliged to draw up recovery plans from 2015 onwards. These arrangements transpose the corresponding provisions of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms, OJ L 2014/190, p. 173.
Drawing up of recovery plans / competence
Credit institutions as defined in the CRR that are not part of a group, are required to draw up their own individual recovery plans. In the case of groups, the EU parent credit institution, the EU parent investment firm, the EU parent financial holding company or the EU parent mixed financial holding company is responsible for the drawing up of a group recovery plan.
Content of a recovery plan
The recovery plans are required to explain with which instruments the institution or the group may be able to restore its financial stability in the event that a considerable deterioration of the financial situation occurs. With regard to proportionality, for institutions that are not directly supervised by the European Central Bank, the Regulation of the FMA on Bank Recovery Plans (BaSaPV – Bankensanierungsplanverordnung), published in Federal Law Gazette II 25/2015, must be observed.
Recovery plans or group recovery plans of institutions and groups directly supervised by the ECB fall within the competence of the European Central Bank. Plans for institutions and groups not directly supervised by the European Central Bank were to be submitted to the Financial Market Authority by 30.09.2015, and are to be updated on an annual basis. Institutions and groups with total assets of up to EUR 350 million, were allowed to only have to submit their recovery plans by 30.11.2015; such recovery plans must be updated at least every two years.
Three documents are available for download below under “Further information”. These items are relevant for drawing up of recovery plans for institutions that are not directly supervised by the European Central Bank.
Note: These downloads are only available in German. Requirements for recovery plans for significant institutions are defined by the ECB!