Preparation Recovery Plan

Initial Situation

In order to comply with its regulatory requirements, in particular the German Recovery and Resolution Act (Sanierungs- und Abwicklungsgesetz), a German automotive bank with a parent company outside the EU had to prepare a recovery plan in accordance with EU Directive 2014/59/EU. As a Less Significant Institution (LSI), it is subject to simplified requirements, i.e. it can make use of the facilitations according to the Minimum Requirements for Recovery Plans (MaSanV).

Project Scope

  • Preparation of a recovery plan including
    • Strategic analysis of business model as well as organisational and operational structure
    • Description of corporate governance
    • Selection of recovery plan indicators including appropriate trigger values
    • Definition of recovery options
  • Alignment of recovery plan with parent company
  • Notification to the Federal Financial Supervisory Authority (BaFin)

Our Contribution

  • Supporting the preparation of the recovery plan by
    • Researching and preparing relevant information
    • Suggesting selected recovery indicators
    • Identifying potential recovery options
    • Developing a tool for the quantitative estimation of individual recovery options‘ effects on the selected recovery plan indicators
  • Coordinating alignments within the Bank and the Group
  • Filling in the template provided by BaFin
  • Documenting the underlying reasonings
  • Supporting the supervisory reporting process

Customer Benefit

By the end of the project, the recovery plan had been uploaded and thus the corresponding regulatory requirement been fulfilled in due time. The recapitalisation amount was set at zero by BaFin.

Relevant Skills/Tools

  • Solid knowledge of regulatory requirements regarding recovery plans
  • Good understanding of the business model of an automotive captive
  • Sound know-how of the relevant control parameters
  • Microsoft Excel

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