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Part III Single Resolution and the BRRD, 10 Recovery and REsolution Plans of Banks in the Context of the BRRD and the SRM: Fundamental Issues

Victor de Serière

From: European Banking Union (2nd Edition)

Edited By: Danny Busch, Guido Ferrarini

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 14 April 2024

Recovery and Resolution Plan (RRP)

This chapter discusses the function of recovery and resolution plans in the context of bank restructuring as envisaged in EU legislation, particularly the EU Directive on the recovery and resolution of banks and investment firms (the Bank Resolution and Recovery Directive; BRRD) and the corresponding EU Regulation on the Single Resolution Mechanism Regulation (the SRMR). These EU rules require banks to develop recovery plans setting out road maps going forward towards recovery when they are struggling to survive, and require EU and national resolution authorities in co-operation with banks themselves to develop resolution plans in a scenario where recovery is no longer possible and ‘normal’ bankruptcy would be undesirable. The chapter examines whether or not these plans are theoretical exercises, and the extent to which they may provide useful guidance to regulators when dealing with a bank that fails or is likely to fail.

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