What are recovery plans and they are part of which mechanism.
The recovery plans are part of the preparatory and preventive measures of the banking resolution and recovery directive.
The recovery plan provide measures to restore the financial position of a distressed bank.
Competent authorities revise recovery plans and may ask the financial institution for modification of recovery plans.
If the financial institution fails to revise the recovery plan, the competent authority may ask the bank to:
*reduce liquidity risk,
*proceed to recapitalization,
*revise funding strategy,
*review compagny strategy,
*review the compagny governanvce.