The objective of the ORC is to provide a summary of the overall capability of the institution to restore its financial position after a significant deterioration by implementing suitable recovery options.
The European Banking Authority (EBA) today published a
consultation paper on its draft Guidelines on the overall recovery
capacity (ORC) in recovery planning. The Guidelines aim to set up a
consistent framework for the determination of the ORC by institutions in
their recovery plans and the respective assessment by competent
authorities. The consultation runs until 14 March 2023.
The
assessment by competent authorities of an institution’s overall
recovery capacity allows to understand to what extent an institution
would be able to recover from a range of potential crisis situations.
The main goal of the Guidelines is to harmonise the observed
practices on the ORC determination and assessment, so as to improve the
usability of recovery plans and make crisis preparedness more effective.
The Guidelines are composed of two sections. The first one addressed
to institutions, aims at providing guidance on the relevant steps to
set-up a reliable ORC framework. The second one, addressed to competent
authorities, complements the framework by harmonising the core elements
of the competent authorities’ assessment of the ORC from both a
quantitative and qualitative perspective.
Consultation process
Responses to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 14 March 2023.
A public hearing will take place via conference call on 14 February 2023 from 9:30 to 11:30 (CET).
EBA
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