+Guidelines on the overall recovery capacity in recovery planning (EBA/GL/2023/06)
---+1. Compliance and reporting obligations
------+Status of these guidelines
---------+1. This document contains guidelines issued pursuant to Article 16 of Regulation (EU) No 1093/2010 …
---------+2. Guidelines set the EBA view of appropriate supervisory practices within the European System of …
------+Reporting requirements
---------+3. According to Article 16(3) of Regulation (EU) No 1093/2010, competent authorities must notify …
---------+4. Notifications will be published on the EBA website, in line with Article 16(3).
---+2. Subject matter, scope and definitions
------+Subject matter
---------+5. These guidelines specify how institutions should include in the recovery and group recovery …
------+Scope of application
---------+6. These guidelines apply to institutions as defined in point 23 of Article 2(1) of Directive …
---------+7. For institutions that are not part of a group subject to consolidated supervision pursuant to …
---------+8. For institutions that are part of a group subject to consolidated supervision pursuant to …
---------+9. Competent authorities may specify how to apply all or part of these guidelines to institutions …
---------+10. Competent authorities may waive part of paragraphs 26, and from 41 to 47, for institutions that …
------+Addressees
---------+11. These guidelines are addressed to competent authorities as defined in points (2)(i) and …
------+Definitions
---------+12. Unless otherwise specified, terms used and defined in Directive 2014/59/EU, Directive …
---+3. Implementation
------+Date of application
---------+13. These guidelines apply from 11.01.2024.
---+4. Setting the framework of overall recovery capacity (ORC) for institutions
------+14. Institutions, for determining the overall recovery capacity (ORC), should define the following …
------+15. Following the definition of the previous components, institutions should determine the ORC as a …
------+Section I. ORC basic components
------+List of credible and feasible recovery options
---------+16. The starting point for the determination of the ORC should be a comprehensive full list of …
---------+17. To ensure that the ORC effectively represents the ability of the institutions to restore their …
---------+18. The general factors for the credibility and feasibility assessment of the recovery options to …
------+Range of scenarios of severe macroeconomic and financial stress
---------+19. The other component of the ORC is the ‘range of scenarios of severe macroeconomic and financial …
---------+20. To calculate the ‘scenario-specific recovery capacity’, institutions should assume that the …
---------+21. In the exceptional circumstances where an institution argues that it is not able to draw up a …
------+Section II. Calculating ‘scenario-specific recovery capacity’
------+Starting point
---------+22. Institutions should consider as the starting point for the calculation of the …
------+Timeframe
---------+23. When assessing the expected timeframe for the recovery option as referred to in Article …
---------+24. Institutions should calculate the effects of the implementation of their recovery options, for …
---------+25. For recovery options with a longer timeframe than the ones set out in paragraph 24, only the …
------+Representation
---------+26. Institutions should express their ‘scenario-specific recovery capacity’ at least for the …
---------+27. Institutions should express their ‘scenario-specific recovery capacity’ by reporting the sum of …
------+Section III. Determining the ORC
------+Step 1 – Selection of recovery options
---------+28. To calculate the ‘scenario-specific recovery capacity’, institutions should select from the …
------+Step 2 – Adjustment of recovery options: additional constraining factors
---------+29. When selecting recovery options appropriate to a specific scenario, institutions should take …
------+Step 3 – Calculation of ‘scenario-specific recovery capacity’
---------+30. When calculating the ‘scenario-specific recovery capacity’, institutions should employ a …
------+Step 4 – Determination of the ORC range
---------+31. To determine the ORC range, institutions should consider the highest and lowest …
---+5. Competent authorities’ assessment of the ORC
------+32. When assessing recovery plans, competent authorities should ensure, in a manner laid down in …
------+Section I. Assessment of the ‘scenario-specific recovery capacity’
---------+33. To assess the ‘scenario-specific recovery capacity' provided by the institutions under each …
---------+34. In particular, competent authorities should assess whether scenarios are severe enough with …
---------+35. Competent authorities should assess the credibility and feasibility, including the timeframe …
---------+36. Competent authorities should review, where appropriate and feasible, the assessment and …
---------+37. Competent authorities should take into consideration, where appropriate and available, peer …
------+Section II. Assessment of ORC – ‘adjusted ORC’
---------+38. Competent authorities should ensure that the ORC is calculated by the institutions as the range …
---------+39. Based on the assessment of the institutions’ ‘scenario-specific recovery capacity’, competent …
---------+40. The ‘adjusted ORC’ should reflect the competent authorities’ assessment of the institutions’ …
------+ORC score
---------+41. Competent authorities should assess the ‘adjusted ORC’ specified in accordance with paragraphs …
---------+42. In cases where the ‘adjusted ORC’ would result between different levels under paragraph 41 …
---------+43. To complement their ORC assessment, competent authorities should take into account general …
---------+44. ‘Weak’ ORC should lead either to the assessment of a material deficiency in the recovery plan …
---------+45. ‘Adequate with potential room for improvement’ ORC may lead to the identification of a specific …
---------+46. When carrying out the assessment of the identification of a material deficiency or a specific …
---------+47. The classification referred to in paragraphs 41 to 43 should support the assessment of the ORC …
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Guidelines on the overall recovery capacity in recovery planning (EBA/GL/2023/06)

Guidelines on the overall recovery capacity in recovery planning (EBA/GL/2023/06)

https://www.eba.europa.eu/activities/single-rulebook/regulatory-activities/recovery-resolution-and-dgs/guidelines-overall – PDF

1. Overview

,
1. Compliance and reporting obligations

1. Compliance and reporting obligations
2. Subject matter, scope and definitions

2. Subject matter, scope and definitions
3. Implementation

3. Implementation
4. Setting the framework of overall recovery capacity (ORC) for institutions

4. Setting the framework of overall recovery capacity (ORC) for institutions
5. Competent authorities’ assessment of the ORC

5. Competent authorities’ assessment of the ORC

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

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