2020/05/20

The European Banking Authority (EBA) reported on its assessment of interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive. Following a first analysis of a sample of recovery and resolution plans, the EBA outlines its observations and identifies best practices and areas where further improvement is needed to maximise synergies and ensure a smooth transition from one phase to another. The report also clarifies the specific purpose in each phase of some specific common elements, such as, critical functions and access to central bank facilities, and identifies the advantages and disadvantages of potential harmonisation.  In addition, the report considers the potential impact of recovery options on the institution’s resolvability and introduces a framework to support the assessment and consultation process between resolution and competent authorities. The report’s first annex includes a template used to perform the comparative analysis of a sample of recovery and resolution plans. The second annex is a practical tool to help resolution authorities to analyse the potential impact of recovery options on the institution’s resolvability.

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