1. Where an institution fails to meet its combined buffer requirement, it shall prepare a capital conservation plan and submit it to the competent authority no later than five working days after it identified that it was failing to meet that requirement, unless the competent authority authorises a longer delay up to 10 days.
Competent authorities shall grant such authorisations only on the basis of the individual situation of a credit institution and taking into account the scale and complexity of the institution's activities.
2. The capital conservation plan shall include the following:
(a) estimates of income and expenditure and a forecast balance sheet;
(b) measures to increase the capital ratios of the institution;
(c) a plan and timeframe for the increase of own funds with the objective of meeting fully the combined buffer requirement;
(d) any other information that the competent authority considers to be necessary to carry out the assessment required by paragraph 3.
3. The competent authority shall assess the capital conservation plan, and shall approve the plan only if it considers that the plan, if implemented, would be reasonably likely to conserve or raise sufficient capital to enable the institution to meet its combined buffer requirements within a period which the competent authority considers appropriate.
4. If the competent authority does not approve the capital conservation plan in accordance with paragraph 3, it shall impose one or both of the following:
(a) require the institution to increase own funds to specified levels within specified periods;
(b) exercise its powers under Article 102 to impose more stringent restrictions on distributions than those required by Article 141.