The Recovery and Resolution framework marks the Union’s response to the critical issue of banks deemed ‘too big to fail’ during the recent financial crisis.
The key objectives of the framework are to ensure that banks have adequate safeguards in place to prevent crises, that authorities have requisite powers to intervene to restore financial stability, and that, in cases of ultimate failure, banks are resolved in an orderly manner without adverse effects on taxpayers or the financial system as a whole.
As a result, significant progress has been made by the authorities and the financial institutions. Recovery plans are now at a more advanced stage, and resolution plans are gaining in scope and detail.
Recovery and resolution planning has become an integral part of the risk management framework, in combination with the capital and liquidity assessment processes (ICAAP and ILAAP).
OUR SERVICES
With our broad experience in the preparation of recovery plans and our expertise in resolution, we assist firm in ensuring the expectations of regulatory authorities are met.
Our services include:
1- Preparation and review of all aspects of recovery plans;
2- Update of the ICAAP/ILAAP in line with the recovery planning process;
3- Alignment of resolution and recovery planning;
4- Conducting or assisting with resolvability analyses including operational continuity planning.