Timeframe

When assessing the expected timeframe for the recovery option as referred to in Article 12(2)(c) of Commission Delegated Regulation (EU) 2016/1075, for the purposes of calculating the ‘scenario-specific recovery capacity’ institutions should have regard to the specific features of the recovery options and the type of events included in the scenario (e.g. system-wide, idiosyncratic, combined).

Institutions should calculate the effects of the implementation of their recovery options, for an impact on their capital (including leverage) position over an 18-month time horizon and for an impact on the liquidity position over a 6-month time horizon, from the starting point determined in accordance with paragraph 22.

For recovery options with a longer timeframe than the ones set out in paragraph 24, only the impact observed within the identified timeframes set out in that paragraph should be included in the calculation of the ‘scenario-specific recovery capacity’.