EBA recommends major EU cross-border banking groups to develop recovery plans23 January 2013 The EBA adopted a formal Recommendation to ensure that major EU cross-border banks develop group recovery plans by the end of 2013. The plans shall be submitted to the respective competent authorities and discussed within colleges of supervisors. The aim of the Recommendation is to spur the development of recovery plans and to foster convergence on the highest standards across the Union. The Recommendation has been adopted as part of the EBA's mandate to contribute to the development of effective and consistent recovery and resolution plans. It intends to fill the interim period before a comprehensive legislative framework for the recovery and resolution of credit institutions is implemented at EU level following the proposal by the European Commission presented in June 2012. Group recovery plans should be drafted in accordance with the international standards agreed under the auspices of the Financial Stability Board and consistently with the template attached to the Recommendation. The template covers the key elements that should be addressed in a recovery plan:
The template for the recovery plans follows an EBA discussion paper published in May 2012. It is in line with the Key Attributes of Effective Resolution Regimes for Financial Institutions issued by the Financial Stability Board in October 2011. The EBA Recommendation is addressed to the national competent authorities which are home supervisors for the 39 European banks listed in the annex. Those national competent authorities shall notify the EBA by 23 March 2013 as to whether they comply or intend to comply with this Recommendation. Notes to the Editors |