On September 26, 2014, the EBA published a consultation on proposed guidelines which set out the minimum qualitative and quantitative indicators that a firm should include in its recovery plan, as required by the BRRD, for capital, liquidity, profitability and asset quality. A recovery plan will set out how a firm intends to restore financial viability in case of severe distress. The indicators will be used to identify when to trigger the process set out in the recovery plan to assess which recovery actions should be taken.
The consultation closes on January 2, 2015. The consultation paper is available at: http://www.eba.europa.eu/-/eba-consults-onqualitative-and-quantitative-recovery-plan-indicators .
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