Recovery plans ensure that banks are prepared to restore their viability in a timely manner even in periods of severe financial stress. Banks under the direct supervision of the ECB are required to draft and maintain recovery plans and to submit them annually for assessment. Recovery plans are a key element of the European crisis management framework.
The ECB supports banks in their recovery planning and engages in open and transparent dialogue with them.
Benchmarking of recovery plans
The benchmarking analysis of the 2019/20 recovery plan cycle looks at key characteristics of the plans and identifies areas for improvement. The benchmarking encompasses plans assessed until July 2020.Benchmarking of recovery plans (cycle 2019/20)
Newsletter article on the impact of the pandemic
The pandemic has put banks’ recovery plans to the test. But to weather a system-wide storm of this kind, banks need to improve crucial parts of their recovery plans, as the ECB found in its most recent benchmarking exercise.Supervision Newsletter article: COVID-19 exposes weaknesses in banks’ recovery plans
ECB Report on recovery plans
The report, written after three successive cycles of recovery plan assessments, presents the ECB’s lessons learned and some best practices observed in five key areas: recovery options, overall recovery capacity, recovery indicators, playbooks and dry runs. It aims to help significant institutions further improve their plans and make them more operational.ECB Report on recovery plans
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17 February 2021
COVID-19 exposes weaknesses in banks’ recovery plans (Supervision newsletter article)