ECB published results of the benchmarking analysis of the recovery plan cycle for 2018. The results provide a horizontal overview of key characteristics of the plans and identify key focus points for improvements. The benchmarking exercise encompasses plans assessed until July 2019. Overall, 91 recovery plans were received and assessed in the role of ECB as the consolidating supervisor in the cycle. The core analysis is based on the standardized reporting templates of 85 recovery plans, unless marked otherwise. For six banks, the standardized reporting templates could not be used either due to data quality issues or timing aspects.
The analysis highlights that banks have reduced their overall recovery capacity figures compared to last year, but numbers are still rather high. The document also outlines the following key focal points of ECB work in 2020:
- Increase usability of plans in crisis situations
- Ensure that banks can react to fast-moving liquidity events/cyber scenarios
- Achieve a more realistic view on the overall recovery capacity of institutions—that is, their resilience in crisis situations
- Work on integrating the overall recovery capacity into the Supervisory Review and Evaluation Process (SREP), in line with the revised EBA guidelines
- Explore the topic of Intra Group Financial Support Agreements
Related Link: Benchmarking of Recovery Plans (PDF)
Keywords: Europe, EU, Banking, Resolution Planning, Recovery Planning, Benchmarking, SREP, Reporting, ECB
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APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
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