Topic Recovery/resolution Resolution planning and preparation
In contrast to recovery plans, for which the respective institutions are responsible, resolution plans are prepared by BaFin. If the SRB is the competent authority for an institution, the SRB draws up the resolution plan in cooperation with BaFin.
Setting institution-specific minimum requirements
As an NRA, BaFin can set institution-specific minimum requirements for own funds and eligible liabilities (MREL) and monitor whether the institutions have the minimum amount required at their disposal.
The purpose of setting this minimum amount is to ensure that institutions have sufficient liabilities that can be used for loss absorption and recapitalisation purposes should a resolution require a bail-in of shareholders and creditors.
Reducing and removing impediments to resolvability
If the resolution authority finds that there are material impediments to resolvability, the institution has to propose appropriate measures with which the impediments can be removed.
If the resolution authority considers these measures to be appropriate, the authority can order the implementation of these measures; if it may consider these to be inappropriate, it can order the implementation of other appropriate measures.
