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ARTICLE · 21 MAY 2015

European Banking Authority Publishes Final Guidelines On Recovery Plan Indicators

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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 UnionFinance and Banking

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

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