Introduction to Resolution Planning
One of the key tasks of the SRB and NRAs is to draft resolution plans for the banks. Resolution plans are prepared by the SRB and NRAs within the forum of IRTs. IRTs are the main forum in which the SRB and NRAs cooperate in performing resolution activities (resolution planning and preparation of resolution schemes). IRTs are composed of staff of the SRB and the relevant NRAs. They are headed by coordinators appointed from the SRB’s senior staff.
The purpose of a resolution plan is to determine the bank’s critical functions, to identify and address any impediments to its resolvability and to prepare for its possible resolution. A resolution plan is a comprehensive document, which details the characteristics of a bank and describes the preferred resolution strategy for that bank, including which resolution tools to apply. It concludes with a resolvability assessment of the bank. The purpose of this assessment is to identify and to address any impediments to the resolution of the bank and to set its MREL.
The Introduction to Resolution Planning details some of the main facets of the resolution process. It includes a description of the banks under the remit of the SRM and SRB, an explanation of the tasks of the SRB, and a look at resolution planning.