European Banking Authority Publishes Recommendation on the Coverage of Entities in a Group Recovery Plan

The European Banking Authority has published an own-initiative Recommendation on the coverage of entities in banking group recovery plans, with the aim of defining common criteria to identify entities that need to be covered in group recovery plans, as well as the extent of such coverage.

The EBA recommends that entities are covered in a group recovery plan in proportion to their relevance. It recommends that entities be categorized for recovery purposes as; (i) relevant for the group; (ii) relevant for the economy or financial system of a relevant member state; or (iii) not relevant for either of the two. For each category, different levels of information are identified. The Recommendation also provides for an adjustment phase to ensure the smooth migration of recovery planning information currently available at the local level to the group level.

View EBA Final Report.

View EBA Press Release.