European Banking Authority Publishes Final Guidelines On Recovery Plan Indicators

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Shearman & Sterling LLP
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On May 6, 2015, the EBA published its final report on guidelines on the minimum list of qualitative and quantitative recovery plan indicators, including the final guidelines.
European Union Finance and Banking
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On May 6, 2015, the EBA published its final report on guidelines on the minimum list of qualitative and quantitative recovery plan indicators, including the final guidelines. Under the Banking Recovery and Resolution Directive, banks and certain investment firms are required to prepare recovery plans setting out the measures that a firm would take to restore its financial position. Recovery plans are required to include a set of indicators which identify when any of the measures included in the recovery plan are to be invoked. The final guidelines, which should be read in conjunction with the guidelines on the range of scenarios to test recovery scenarios, must be agreed by the national regulator charged with approving the overall recovery plan of a firm. The final guidelines specify that each recovery plan must include capital, liquidity, profitability and asset quality recovery plan indicators. Market-based indicators and macroeconomic indicators must also be included in a recovery plan unless the national regulator agrees that such indicator/s is not relevant to the firm's legal structure, risk profile, size and complexity. For each category of indicators, the guidelines set out the specific indicators to be included. The guidelines are a minimum list of indicators and firms should not limit their indicators to that minimum. The guidelines will apply from July 31, 2015 to banks and investment firms subject to the BRRD and to national regulators.

The guidelines are available at: http://www.eba.europa.eu/-/eba-issues-final-guidance-on-recovery-indicators.

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European Banking Authority Publishes Final Guidelines On Recovery Plan Indicators

European Union Finance and Banking
Contributor
Our success is built on our clients’ success. We have a long and distinguished history of supporting our clients wherever they do business, from major financial centers to emerging and growth markets. We represent many of the world’s leading corporations and major financial institutions, as well as emerging growth companies, governments and state-owned enterprises, often working on ground-breaking, precedent-setting matters. With a deep understanding of our clients' businesses and the industries they operate in, our work is driven by their need for outstanding legal and commercial advice.
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