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Recovery and Resolution Planning

  • Marilena Rispoli Farina
  • Luigi Scipione
Chapter

Abstract

Prevention is the most important and innovative aspect of the new European framework for regulating banking crises.

This chapter analyses the main substantive and procedural aspects regarding the creation and approval of recovery and resolution plans under the Bank Recovery and Resolution Directive (BRRD). It also aims to highlight the importance of planning as a governance tool. “Recovery plans” can play a key role in improving corporate governance structures and promoting the development of a new risk management culture.

For recovery and resolution plans to be credible, the planned measures must be able to ensure orderly bank resolution and safeguard the stability of the system. A further aim of this chapter will therefore be to understand how these difficulties can be realistically overcome.

Keywords

Early warning Governance Living will Recovery plan Resolution plan Systemic crises Trigger event 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Marilena Rispoli Farina
    • 1
  • Luigi Scipione
    • 1
  1. 1.University of NaplesNaplesItaly

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