Guidelines on the range of scenarios to be used in recovery plans

These Guidelines aim at specifying the range of scenarios of severe macroeconomic and financial distress against which institutions shall test the impact and feasibility of their recovery plans. The recovery plans detail the arrangements which institutions have in place and the early action steps that would be taken to restore their long-term viability in the event of a material deterioration of financial situation under severe stress conditions.

When the consultation was launched, there was an existing mandate in the Bank Recovery and Resolution Directive (BRRD) for the EBA to develop technical standards for the range of scenarios to be used by firms to test their recovery plans. During legislative process the mandate has been amended and the EBA was asked to develop Guidelines instead.