4.6. Self-assessment report

124. Institutions should at least every two years prepare and submit to the relevant resolution authority a report, where they self-assess whether they meet, and to what degree, the capa-bilities set out in section 4.1 to 4.5 and 4.8 of these guidelines, and in sections 4 and 5 of the Guidelines on transferability to complement the resolvability assessment for transfer strategies (Transferability Guidelines)²³ , and taking into account any feedback received from authorities within the two years, including inter alia the following elements:

• a. Degree in which the capability is met (low, medium, high, not applicable);
• b. Description of how the capability is met or why it is deemed not applicable under point a;
• c. Gap assessment on the resolvability capabilities as set out in these guidelines and those of the institution, on how this gap can be addressed and by when;
• d. Description of how the capability is embedded in business as usual (BAU);
• e. Description of how the capability relates to the recovery planning of the institution (e.g. do operational continuity in resolution arrangements also support recovery options such as disposals, or are recovery arrangements leveraged to support res-olution);
• f. Any internal or external assessment performed on how these guidelines have been applied by the institution, including internal or external audit reports, external con-sultant assessments, dry runs or supervisory reviews;
• g. Any additional topic set out by the relevant resolution authority (e.g. lessons learnt from recent downturn or market event).

125. In the executive summary of their self-assessment set out in paragraph 124, institutions should:

• a. set out their understanding of the resolution strategy as identified by the resolu-tion authority, and of their role and that of the authority(ies) in the execution of that strategy;
• b. describe their testing and assurance framework that allows them to ensure their capacity to support the execution of the resolution strategy on a continued basis;
• c. summarise their self-assessment by key resolvability areas as follows:
• i. Governance;
• ii. Operational continuity in resolution (OCIR) and access to FMIs²⁴ ;
• iii. Loss absorbing and recapitalisation capacity;
• iv. Liquidity and funding in resolution;
• v. MIS²⁵ ;
• vi. Communication;
• vii. Transferability and restructuring.

126. Reports should be submitted by institutions to the resolution authority at least every two years. The first report should be submitted by 31 December 2024.

127. In the context of cross-border resolution groups, the self-assessment report should either be reported by the resolution entity to the group-level resolution authority (or the relevant resolution authority in the case of an MPE strategy) or by the non-resolution entity to the local resolution authority.

128. When produced, the self-assessment of the non-resolution entity should be developed on the basis of the group resolution strategy and in coordination with the resolution entity.

129. For the purpose of the self-assessment report referred to in paragraph 124, institutions should follow the format provided by their resolution authority.

²³ Guidelines EBA/GL/2022/11 for institutions and resolution authorities to complement the resolvability assessment for transfer strategies (Transferability Guidelines).

²⁴ Financial market infrastructures.

²⁵ Management information systems.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/