Resolvability assessement is part of resolvability and preventice measures of banking recovery and resolution directive.
As for resolution plan, the resolution authorities should also assess resolvability.
The resolution authority should assess wether it could:
-liquidate the bank under normal unsolvency proceedings;
-Apply the different resolution tools.
-Check impediment to resolvability (ask for additional information from the bank, reduce bank activity, divest specific assets).
*banking recovery and resolution directive:
are focuded on the notions of recovery and resolution. Recovery aims to restore the financial position of bank. Resolution is a crisis management tool.
*Preparatory and preventative measures:
Identify (and address) the developing problems of an institution at a early stage.
*Resolution plan: are measures to be taken when resolution threshold is met.
