4. Setting the framework of recovery plan indicators

The framework of recovery plan indicators should be established by institutions and assessed by the competent authority taking into consideration the criteria laid down in these guidelines.

The recovery plan should contain detailed information on the decision-making process with regard to the activation of the recovery plan as an essential element of the governance structure, based on an escalation process using the indicators set out in the relevant framework and in accordance with Article 9(1) of Directive 2014/59/EU.

In defining this framework, institutions should consider that indicator breaches do not automatically activate a specific recovery option but indicate that an escalation process should be started to decide whether to take action or not.

Institutions should include recovery plan indicators of both a quantitative and qualitative nature.

While setting the quantitative recovery plan indicator thresholds, consistently with its overall general risk management framework in accordance with Article 5(4) of Commission Delegated Regulation (EU) 2016/1075, the institut ion should use progressive metrics (‘traffic light approach’) in order to inform the institution’s management body that such indicator thresholds could potentially be reached.

Categories of recovery plan indicators

Requirements for the calibration of recovery plan indicators

Actions and notifications upon breaching an indicator

Arrangements for monitoring recovery plan indicators