EBA欧洲银行-EBA-GL-2015-02-GL-on-recovery-plan-indicators_42页_842kb

EBA Guidelines on the Minimum List of Qualitative and Quantitative Recovery Plan Indicators Summary

Executive Summary

These guidelines, EBA-GL-2015-02, are developed under Directive 2014/59/EU to define the minimum list of quantitative and qualitative indicators that financial institutions must include in their recovery plans. The purpose of these indicators is to identify critical points at which appropriate recovery actions should be initiated. The guidelines are complemented by the EBA Guidelines on the range of scenarios for recovery plans.

The recovery plan indicators are agreed upon by competent authorities during the assessment of recovery plans and must be regularly monitored by institutions. The guidelines recognize that different institutions face varying risks based on their business model, size, and complexity. Therefore, while certain categories of indicators are mandatory, others are subject to a rebuttable presumption, meaning they can be excluded if justified by the institution.

The guidelines include a minimum list of categories (capital, liquidity, profitability, and asset quality indicators) and two additional categories (market-based and macroeconomic indicators). Institutions are encouraged not to limit themselves to the minimum list and are provided with an illustrative list of additional indicators.

Background and Rationale

• International Context: Recovery and resolution planning is guided by the Financial Stability Board (FSB), which outlines essential elements for effective resolution regimes.
• EU Framework: Directive 2014/59/EU establishes a Union-wide framework for crisis prevention, management, and resolution of credit institutions and investment firms.
• EBA Mandate: The EBA is required by Article 9(2) of the Directive to issue guidelines specifying the minimum list of recovery plan indicators.
• Complementary Documents: These guidelines should be read together with other EBA regulatory products, including RTS on recovery plan content, RTS on recovery plan assessment, and guidelines on scenarios.

The rationale for the guidelines is to ensure that recovery plans are effective, feasible, and aligned with the institution's risk profile. They are designed to support timely decision-making and continuous monitoring of financial health.

Key Content and Main Points

1. Mandatory Categories of Recovery Plan Indicators

• Capital indicators: Measure the institution's capital adequacy and leverage.
• Liquidity indicators: Monitor the institution's ability to meet short-term and long-term liquidity needs.
• Profitability indicators: Track income-related aspects that may lead to financial deterioration.
• Asset quality indicators: Monitor the evolution of non-performing exposures and their impact on financial health.

2. Categories Subject to Rebuttable Presumption

• Market-based indicators: Reflect market expectations about the institution's financial condition (e.g., stock price variation, CDS spreads, rating downgrades).
• Macroeconomic indicators: Capture signals of economic deterioration in relevant geographical areas or sectors (e.g., GDP variations, sovereign CDS, unemployment rate).

3. Minimum List of Recovery Plan Indicators

4. Additional Indicators (Illustrative List)

5. Framework Requirements

• The framework of recovery plan indicators should be aligned with the institution's risk profile, business model, and strategy.
• It should be capable of identifying key vulnerabilities and triggering appropriate actions.
• The framework must be integrated into the institution's governance, escalation procedures, and risk management systems.
• Indicators should be forward-looking and capable of timely monitoring.
• Institutions should use progressive metrics (e.g., traffic light approach) to signal potential breaches.
• Indicators must be recalibrated at least annually and demonstrated to be effective in triggering recovery actions.

Reporting and Implementation

• The guidelines are addressed to competent authorities and financial institutions.
• Institutions must comply with the guidelines and notify the EBA by 23.09.2015 whether they comply or not.
• The guidelines apply from 31 July 2015.
• Competent authorities may exclude certain categories if they are not relevant to the institution’s legal structure, risk profile, size, or complexity.

Conclusion

These guidelines provide a comprehensive framework for the development of recovery plans, emphasizing the importance of qualitative and quantitative indicators to ensure the viability and resilience of financial institutions. They aim to enhance crisis preparedness, transparency, and effective governance by requiring institutions to monitor and report on key financial metrics. The inclusion of both mandatory and illustrative indicators allows for flexibility while maintaining regulatory consistency across the EU.