EBA Recommends Recovery Plans for Cross-Border Banking Groups

The European Banking Authority ("EBA") adopted a formal recommendation on the development of recovery plans in respect of 39 named banks in the European Union, including Deutsche Bank AG, Commerzbank AG and BNP Paribas SA. Suggestions for key elements to be addressed in a recovery plan include:

• information on the bank and its governance structure;
• options available in a crisis and an assessment of their potential impact; and
• planned measures for facilitating future updates of the plan or its implementation in times of crisis.

The recommendation is addressed to the home supervisors of the named banks, who are required to notify the EBA by March 23, 2013 as to whether they have complied or intend to comply with the recommendation.