The Single Resolution Board has issued operational guidance and a complementary quantitative template for banks preparing Business Reorganisation Plan Analysis Reports in connection with open-bank bail-in resolution strategies. The guidance consolidates and clarifies existing expectations without introducing new requirements, following an industry request for a public, standardized framework and a consultation conducted from Feb. 3 to March 30, 2026. Banks are expected to demonstrate their operational ability to produce and implement a business reorganization plan and provide reasonable prospects of long-term viability after bail-in. The framework covers governance, identification of the post-resolution Core Bank, a single adverse scenario, credible reorganization measures and maximum reorganization capacity. Financial projections should cover five years and assess sustainable viability against an annual return on equity of at least 8% to 10% and a cost-to-income ratio no higher than 50% to 60%, although thresholds may be adjusted for institution-specific factors in agreement with the internal resolution team. Use of the quantitative template is encouraged but not mandatory, provided banks submit equivalent analysis. The guidance is to be implemented through the normal resolution planning cycle, with Business Reorganisation Plan Analysis Reports generally updated only after material changes or at the internal resolution team's request.
Single Resolution Board2026-07-30
Single Resolution Board issues operational guidance standardizing business reorganization plan analysis
The Single Resolution Board has issued guidance standardizing banks’ analysis of their ability to reorganize and restore long-term viability after an open-bank bail-in, without adding new requirements. It covers governance, Core Bank identification, reorganization measures, five-year financial projections and maximum reorganization capacity. The accompanying quantitative template is optional.