EBA Recovery and Resolution Plan


On May 20, EBA issued report on the interlinkages between plans.


  • EBA published report on interlinkages between recovery and resolution planning.
  • Report assessed interlinkages between rec and res planning under BRRD Directive, aim to enhance unity between two phases, ensure consistency in potential implementation.
  • Rec and Res Plans
  • Recovery plans set out the framework and specific actions an institution itself can take to recover from a severe stress situation and to be able to continue as going concern.
  • Resolution plans, which provide for the resolution actions that the resolution authority (RA) may take where the institution meets all the conditions for a resolution.
  • Although separate under BRRD, rec and res planning could be seen as a continuum.
  • Crucial to maximize synergies, ensure a smooth transition from one phase to another.
  • Observations
  • Report identified best practices and areas where further improvement and/or clarifications needed, clarified specific common elements between both types of plans such as critical functions and access to central bank facilities, and specific purposes.
  • Report also analyzed potential impact of recovery options on a firms' resolvability.
  • Introduced assessment framework to support assessment and consultation process between resolution and competent authorities, and accompanied by two annexes.
  • First annex has template for comparison of sample recovery and resolution plans.
  • Second annex is a practical tool to help resolution authorities in conducting their analysis of the potential impact of recovery options on the institution’s resolvability.
  • Conclusions
  • Some interlinkages have been observed between recovery and resolution plans.
  • Various common elements in which recovery, resolution plans show high consistency.
  • Some good practices include incorporation in plans of clear and reasoned explanations of divergences between the documents and organizing workshops for the institution.
  • Progress needed in terms of assessing potential implications of recovery options on institutions’ resolvability or usage in the post-stabilization phase in resolution plans.

Regulators EU EBA
Entity Types Bank; Corp; Depo; Exch
Reference PR, Rp EBA/Rep/2020/16, 5/20/2020; BRRD Dir 2014/59
Functions Financial; Legal; Operations; Reporting; Resolution; Risk; Treasury
Countries European Union
Products Banking; Clearing; Corporate; Derivatives; Futures; Securities
Regions EMEA
Rule Type Guidance
Rule Date 5/20/2020
Effective Date 5/20/2020
Rule Id 78190
Linked to
Reg. Last Update 5/20/2020
Report Section EU

Last substantive update on 05/22/2020