Operational guidance for bank reorganisation plans under SRB consultation
The Single Resolution Board (SRB) has opened a public consultation on new operational guidance and a quantitative template for banks' Business Reorganisation Plan Analysis Reports (BRP AR). The consultation period runs until March 27, 2026.
Strengthening resolution readiness
The new operational guidance and quantitative template are designed to enhance banks' capabilities in business reorganisation planning, a critical component of resolution readiness.
Following the application of the bail-in tool, financial institutions are mandated to submit a comprehensive Business Reorganisation Plan (BRP) within one month.
This requirement is contingent on demonstrating reasonable prospects of financial soundness and long-term viability.
To ensure preparedness for such scenarios, banks are now requested to prepare a BRP Analysis Report (BRP AR) during the resolution planning phase.
The guidance aims to support banks in effectively demonstrating their progress and capabilities related to these reorganisation plans, thereby bolstering the overall effectiveness of resolution frameworks.
It compiles existing requirements into a single, cohesive document, streamlining the process for institutions.
Aligning with broader resolvability efforts
The new guidance aligns with the Single Resolution Board's updated approach to operationalisation, resolution testing, and crisis readiness.
It integrates existing requirements, complementing documents like the SRB Operational Guidance on resolvability self-assessment and the SRB Operational Guidance on Resolvability Testing for Banks.
The SRB will engage with the banking industry and other stakeholders in a meeting on March 3, 2026, to discuss the proposals.
Comments on both the operational guidance and the quantitative template are invited via an online questionnaire, with a deadline of March 27, 2026. Following the consultation, the SRB will publish the final updated versions of the guidance and template, along with feedback received.
Crucial step for resolution planning
This consultation marks a crucial step in enhancing the operational effectiveness of resolution frameworks.
The focus on quantitative reporting will significantly improve supervisory oversight and data comparability.
The initiative underscores the SRB's commitment to robust crisis preparedness.