The recovery strategy is designed to provide management with a clear view of potential options for restoring the capital and liquidity position in a crisis. Banks also need a resolution strategy that outlines the options open to the authorities in managing the demise of the bank in a ‘controlled' manner. Together, recovery and resolution planning have the potential to reduce the riskiness of the financial system by helping to limit moral hazard.
In May 2012, the European Banking Authority (EBA) published guidelines regarding recovery plans. The Central Bank of Ireland is closely monitoring the Mortgage Arrears Resolution Strategy (“MARS”) of individual credit institutions.
How we can help
KPMG has significant expertise and depth of knowledge in helping banks and other financial institutions put recovery and resolution strategies in place. We are able to analyse clients’ business models to help them understand practical and financial implications of the proposed recovery and resolution strategies, and to develop strategies for dealing with such implications. Our global reach means we can operate across borders effectively and efficiently and our banking expertise means that you can access assistance on the widest possible range of issues.
If you would like to find out more about the implications of recovery and resolution planning related matters please do get in touch – we’d be delighted to discuss how we can help.