This article 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.
Under 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, credit institutions and groups of credit institutions have been required to draw up recovery plans since 2015. These rules 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 European Central Bank fall within the ECB’s competence. The plans of institutions and groups that are not directly supervised by the European Central Bank (ECB) are required to be submitted to the FMA in their updated version by 30 September each year. The recovery plans of institutions and groups with total assets of up to EUR 350 million, are only required to be submitted to the FMA once every two years, by 30 November of the year in question.
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.
Requirements for recovery plans for significant institutions are defined by the ECB!