Resolution plan

Based on the selected strategy, the Bank of Albania drafts the resolution plan with detailed steps to be followed by banks in case they face any difficulty.

Objectives of the resolution plan
One of the main tasks of the BoA is to plan for the resolution of banks to ensure their resolvability. The purpose of resolution planning is: 
to obtain a comprehensive understanding of the banks and their critical functions, 
to identify and address any impediments to their resolvability, and 
to be prepared for their resolution if needed

Steps for drafting the resolution plan

The Resolution Plan consists of the following six steps:

Detailed analysis of the bank, e.g.: its structure, legal form, financial position, business model, critical functions, internal and external dependencies, critical systems and bank infrastructure.

Determines whether the Resolution objectives of resolution are best served by letting the bank fail or resolving. In the latter case, this step includes a detailed description of the resolution strategy and instruments that will be applied.

Assesses whether the financial and operational requirements for ensuring the bank's continuity, both during and after resolution. This includes continuation of the bank's payments.

Describes all rules and procedures for ensuring that the resolution authority receives all necessary information in good time. It also describes how the process will be communicated internally and externally, before, during and after resolution.

Evaluates whether there are any more impediments to the bank’s resolution and if there are, drawing up with the necessary actions to remove those impediments. This step also addresses the MREL requirement, should this apply.

The Bank of Albania presents a summary of the resolution plan to the bank, in order to include its opinion regarding the plan.

Any question or requirement on additional information can be addressed to the Bank of Albania or sent via email to :

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