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Article (2): Requirement for a Recovery Plan

Effective from 30/10/2023

Financial Institutions must have in place a recovery plan in line with the requirements stated in this Regulation, which must include, at a minimum, the following:

2.1An executive summary setting out the key elements of the plan and a summary assessment of the overall recovery capacity;
 
2.2A summary of the material changes to the Financial Institution and to the recovery plan since the most recent recovery plan;
 
2.3Description of the Financial Institution that outlines its legal structure, Core Business Lines, main risks, business model, Critical Functions, and key financial operations and characteristics;
 
2.4The governance aspects of the Recovery Plan and how it is integrated into the broader corporate governance, policies and processes of the Financial Institution;
 
2.5A framework of recovery indicators, trigger thresholds, and the associated governance and escalation procedures;
 
2.6A range of recovery options that can be implemented to restore the viability of the Financial Institution;
 
2.7A range of stress scenarios, stressing the Financial Institution in various manners, and setting out the management actions to restore its viability, in particular by implementing recovery options;
 
2.8The recovery capacity of the Financial Institution in general and applied to various scenarios;
 
2.9The central bank liquidity facilities that the Bank may have access to and the process to obtain access, including the collateral available for this purpose;
 
2.10An overview of the preparatory arrangements the Financial Institution has taken or intends to take to improve their access to recovery options;
 
2.11Business continuity arrangements;
 
2.12A communication plan catered to all relevant stakeholders, internal and external, to deploy when implementing recovery options; and
 
2.13The Annex as set out in Article 13 below.