ABSTRACT

This chapter starts with an analysis of the relevant parts of both the Bank Recovery and Resolution Directive (BRRD) and the single supervisory mechanism (SSM) and single resolution mechanism (SRM) regulations. The chapter focusses exclusively on resolution planning by resolution authorities and to exclude recovery planning or living wills on the part of the regulated industry. Under the BRRD, individual recovery plans are developed by the regulated institutions. The BRRD's provisions on recovery and resolution planning, which have also been the blueprint for the corresponding regime under the SSM and SRM regulations, reflect the Financial Stability Boards' (FSB) key atributes of efective resolution regimes for financial institutions. The FSB emphasises the need for cross border consistency in structural bank reforms. The European central bank (ECB) acts as consolidating supervisor for groups with subsidiaries and branches both within the banking union and the rest of the European Union.