On January 23, the European Banking Authority (EBA) published its formal recommendation regarding the development of recovery plans for certain EU banks. The recommendation comes in advance of the proposed Recovery and Resolution Directive, which will task the EBA with the development and co-ordination of recovery and resolution plans. By providing guidance to ensure a coordinated recovery approach across the EU, it is hoped that Europe’s banks and economies will be in a collectively stronger position to resolve adverse financial circumstances. The recommendation identifies a group of 39 banks which should be asked to present group recovery plans to their respective competent authorities by December 31, 2013. It also suggests that these plans should be drafted in accordance with Annex 2 of the recommendation, which sets out a template comprising the following three sections:

• • a general overview and summary of the recovery plan;
  • core details of the recovery plan, including a list of available options should a crisis situation arise and an assessment of their impact and execution; and
  • follow-up measures to be taken once the core of the recovery plan is in place.