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Pursuant to the third paragraph of Article 185 of the Banking Act (Official Gazette of the Republic of
Slovenia, No. 25/15; hereinafter: the ZBan-2) and the first paragraph of Article 31 of the Bank of
Slovenia Act (Official Gazette of the Republic of Slovenia, Nos. 72/06 [official consolidated version]
and 59/11), the Governing Board of the Bank of Slovenia hereby issues the following
REGULATION
on the content of the recovery plans of banks and savings banks
I.
GENERAL PROVISIONS
Article 1
(content of regulation)
(1) This regulation sets out in detail the content of the information that must be included in the
recovery plans of banks and savings banks (hereinafter: banks).
(2) The provisions of this regulation shall apply to:
(a) banks that are not part of a group over which the Bank of Slovenia or another competent authority
conducts supervision on a consolidated basis, in the preparation of a recovery plan in accordance with
the first paragraph of Article 184 of the ZBan-2;
(b) banks that are part of a group over which the Bank of Slovenia, the European Central Bank or
another competent authority conducts supervision on a consolidated basis and are not an EU parent
bank, in the preparation of an individual recovery plan in accordance with the second paragraph of
Article 184 of the ZBan-2;
(c) EU parent undertakings that in accordance with Article 291 of the ZBan-2 are included in
supervision on a consolidated basis that is conducted by the Bank of Slovenia or the European Central
Bank, in the preparation of a group recovery plan in accordance with the first paragraph of Article 189
of the ZBan-2.
(3) Wherever this regulation makes reference to the provisions of other regulations, these provisions
shall apply in their wording applicable at the time in question.
Article 2
(transposition of EU directives)
Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a
framework for the recovery and resolution of credit institutions and investment firms and amending
Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC,
2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and
(EU) No 648/2012, of the European Parliament and of the Council (OJ L 173 of 12 June 2014, p 190;
hereinafter: Directive 2014/59/EU) is transposed into Slovenian law by virtue of this regulation.
Article 3
(definition of terms)
(1) The terms used in this regulation shall have the same meanings as in the ZBan-2 or Regulation
(EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential
requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012
(OJ L 176 of 27 June 2013, p 1).
(2) For the purpose of this regulation the following definitions shall apply:
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(a) “recovery” means measures that, in the event of a significant deterioration in the financial position
of a bank, facilitate its restructuring such that its viability and financial soundness is maintained or
restored;
(b) “recovery plan indicators” mean the qualitative and quantitative indicators of the deterioration in
the financial position of a bank that on the basis of the recovery plan trigger individual recovery
measures or preparatory activities for the implementation of individual recovery measures;
(c) “activation of the recovery plan” means the use or implementation of individual measures cited in
the recovery plan, or all of them;
(d) “critical functions” mean the activities, services or operations of a bank or group whose
discontinuance is likely to lead to the disruption of services that are essential to the real economy or to
disrupt financial stability due to the size, market share, external and internal interconnectedness,
complexity or cross-border activities of the bank or group, with particular regard to the substitutability
of those activities, services or operations;
(e) “core business line” means a business line and associated services that represent material sources
of revenue for a bank or a group of which a bank is part, and as such is material to its viability;
(f) “significant undertaking” means an undertaking or branch within a group that:
 has a significant impact on earnings and funding, and accounts for a significant proportion of
the assets, liabilities and equity of the group,
 pursues key business activities in the group,
 performs centralised functions of an operational and administrative nature, or the risk
management function at group level,
 represents a high risk that in the event of a significant deterioration in its financial position or
in the event of its possible winding-up it could endanger the existence of the group or of a
bank in the group,
 has a significant impact on financial stability in one or more Member States where it pursues
registered business activities or where it operates.
II. CONTENT OF BANK OR GROUP RECOVERY PLAN
Article 4
(information in recovery plan)
(1) In connection with the requirements set out in the second paragraph of Article 185 of the ZBan-2, a
bank’s recovery plan or individual recovery plan shall include the information set out in Articles 5 to
14 of this regulation.
(2) In connection with the requirements set out in Article 189 of the ZBan-2, the group recovery plan
shall include a description of measures for maintaining or restoring the conditions for stable operations
of the group as a whole, the parent undertaking and all subsidiaries in the group, and for improving the
financial position of each of them. The information set out in Articles 5 to 14 of this regulation shall
be cited mutatis mutandis at the level of the group in the group recovery plan, and shall include
specific information relating to the relationships between entities in the group, or to individual entities
in the group, as proceeds from the aforementioned articles.
Article 5
(summary of main content of recovery plan)
(1) The recovery plan shall include the following information at least in the summary of its main
content:
1. an indication of the person responsible for adopting and activating the recovery plan,
2. a summary of the strategic analysis and the analysis of various restructuring options,
3. a summary of the recovery plan activation procedure and an assessment of the bank’s recovery
capacity by means of recovery measures in stress scenarios,
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4. a summary of the scope and method of communication and disclosures in connection with the
potential implementation of recovery measures,
5. a summary of any envisaged preparatory measures that would contribute to the more effective
implementation of recovery measures.
(2) Any material changes to the recovery plan relative to the previous recovery plan shall also be cited
in the summary referred to in the first paragraph of this article.
Article 6
(governance in connection with recovery plan)
(1) The information about governance in connection with the recovery plan shall encompass the
following information at least:
1. the preparation of the plan, with a description of the approach to and the entire procedure for
drawing up the plan (including an indication of the use of special tools and methodologies,
where used), and a definition of the functions of the persons involved and their roles in
preparing individual parts of the plan;
2. the adoption of the plan, with a description of the procedure for confirming the draft plan,
including the roles and powers of the bank’s various bodies and departments (internal audit,
external audit, risk committee);
3. the activation of the recovery plan, with a description of the policy with regard to the recovery
plan indicators and the implementation of recovery measures encompassing:
- the roles and responsibilities of individual functions at the bank in selecting and
monitoring the selected recovery plan indicators;
- the responsibilities of individual functions at the bank in taking decisions on the
implementation of recovery measures with regard to the attributes and impact of a
deterioration in the bank’s financial position, and the schedule for the implementation of
individual steps;
4. the inclusion of the recovery plan in ordinary risk management processes, and the amendment
of the recovery plan, with a description of the roles and responsibilities of the individual
functions/departments involved, the procedures and triggers for supplementing or amending
the recovery plan (significant changes at the bank or in the environment) and an indication of
the persons responsible for supplementing or amending the recovery plan;
5. the procedures that ensure that the management board is promptly informed of the need to
implement recovery measures, the escalation of these measures on the basis of threshold
values being reached or transgressed in the recovery plan indicators, and that it is included in
the processes of deciding on these measures.
(2) In the case of a group, the agreements for the coordinated and consistent implementation of
measures at the level of the parent undertaking in the group and at each entity in the group shall also
be defined in the plan.
Article 7
(strategic analysis)
(1) The strategic analysis whose purpose is identifying a bank’s core business lines and critical
functions and defining the measures for their maintenance in the event of a significant deterioration in
the bank’s financial position shall include the following information at least:
1. a description of the business model with a definition of the core lines of business from the
perspective of their materiality to viability and the generation of revenues, and a presentation
of the criteria for their selection;
2. a description of the critical functions, and the criteria for their definition, and an assessment of
the potential adverse consequences for other entities in the group, other banks in the banking
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system, the financial markets and the real sector in the event of the bank ceasing to perform
these functions;
3. a description of the business strategy with the business plan and the strategy for the take-up of
risks;
4. analysis of the most material counterparties and exposures, viz.:
- the ten largest on-balance-sheet (asset and liability) and off-balance-sheet exposures to
third parties by type of product (short-term and long-term loans / deposits by maturity,
guarantees, collateral, equity investments);
- all concentrations of exposures (by economic sector, region, type of product, maturity)
that in the event of distress in a particular segment could result in a significant
deterioration in the bank’s financial position;
- links and exposures to other participants in the money market (interbank relations);
- all dependences on third parties on whom the bank’s operations or the performance of
individual critical functions of the bank are dependent, or on whom a deterioration in the
bank’s operations could have a significant adverse impact;
5. in the case of a group, a definition of significant undertakings in the group, particularly from
the perspective of the core business lines and the critical functions, and all material intragroup exposures, capital links in the group, links in connection with funding and all other
significant links between entities in the group (e.g. legally binding agreements on the
provision of services of an administrative or operational nature, and on tasks in connection
with risk management for other parts of the group).
(2) Insofar as individual items of information set out in the first paragraph of this article are adequately
presented in other documents that the bank has already submitted to the Bank of Slovenia, the bank
may refer to this information by means of an indication of the document or the part of the document in
which the particular information is presented.
Article 8
(available restructuring options)
(1) The information in connection with available restructuring options shall encompass the following
at least:
1. a description of the various restructuring options via the measures that the bank takes in the
event of a significant deterioration in its financial position with the objective of strengthening
itself to the extent that it can restore viability and financial soundness, particularly operations
in its core business lines and the performance of critical functions (e.g. measures in connection
with the maintenance or restoration of adequate liquidity, in connection with the maintenance
or restoration of capital adequacy, in connection with access to funding for unimpaired
operations and the settlement of past-due liabilities, in connection with risk mitigation and
deleveraging);
2. the timeframe for the implementation of the various restructuring options;
3. an indication of potential obstacles to the implementation of recovery measures, including
obstacles of a legal or operational nature to the prompt implementation of the various
restructuring options; in the case of a group, an indication of any legal or other obstacles
deriving from binding agreements between entities in the group;
4. an assessment of the feasibility of the proposed restructuring options, including an assessment
of the potential risks arising in the implementation of a particular option.
(2) Within the framework of the available restructuring options banks shall also describe the measures
that could be implemented should the conditions for early intervention measures be met.
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Article 9
(analysis of available restructuring options)
Analysis of the available restructuring options shall include the following at least:
1. an assessment of the effects of each option that is discussed in the recovery plan, including the
effects that a particular option has on the continuation of critical functions, and the impact on
solvency, capital adequacy, liquidity, funding, profitability and the execution of transactions,
and an indication of the assumptions taken into account in the assessment of the effects; in the
case of a group, a clear definition of the entities in the group in respect of whom an effect has
been identified in connection with a particular restructuring option discussed;
2. an assessment of the effects of the various restructuring options on the external environment,
i.e. on the financial system, shareholders, counterparties, employees and other potential
external effects, and an indication of the assumptions taken into account in the assessment of
the effects;
3. an assessment of whether the unimpaired execution of transactions is endangered in the event
of the implementation of a particular restructuring option from the point of view of access to
market infrastructure and internal resources (e.g. the adequacy of information support,
employees).
Article 10
(funding)
(1) The information about funding shall encompass a description of the arrangements to ensure the
bank’s funding in emergencies, including a definition of the potential funding that would be at the
bank’s disposal and an assessment of the available collateral, including analysis of the fulfilment of
conditions for the bank’s access to a loan of last resort at the Bank of Slovenia.
(2) The restructuring options defined by the bank is its recovery plan may not envisage the use of
emergency fiscal aid or have any direct adverse fiscal impact.
(3) In the case of a group, the group recovery plan or the individual recovery plan at the level of the
individual subsidiary shall include a description of the arrangements of any intra-group financial
support, from which it should be evident who in the group provides financial support and who receives
financial support, the form of financial support, any special conditions for providing financial support,
and other significant information from the perspective of the impact of financial support on the
recovery capacity of the group or individual entities within it.
Article 11
(recovery plan indicators)
The information about recovery plan indicators shall encompass the following at least:
1. a minimum toolkit of indicators in accordance with the Guidelines on the minimum list of
qualitative and quantitative recovery plan indicators, which are published on the European
Banking Authority’s website (https://www.eba.europa.eu/documents/10180/1064487/EBAGL-2015-02+GL+on+recovery+plan+indicators.pdf);
2. the threshold values of indicators as warning signals, whereby the transgression of these
values means that the bank must initiate the procedure for making a decision on the activation
of the recovery plan or the escalation of recovery measures;
3. other circumstances and events that could trigger the procedure for making a decision on the
activation of the recovery plan;
4. the methodologies and tools for monitoring the recovery plan indicators and other potential
triggers of the procedure for making a decision on the activation of the recovery plan.
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Article 12
(stress scenarios)
(1) The information on stress scenarios shall encompass at least information on the systemic and bankspecific stress scenario, and an assessment of the effectiveness and feasibility of the recovery plan in
the conditions of the particular stress scenario.
(2) For each scenario it shall be necessary to cite the assumptions of the scenario, an assessment of the
effects of the scenario on the bank, and an assessment of the effects of each of the envisaged measures
in the recovery plan in the conditions of the stress scenario, via:
1. a description of the principal assumptions of the systemic stress scenario that occurs as a result
of a slowdown in economic growth and a general deterioration in the economic situation, a
rapid deterioration in the liquidity of the interbank market, a significant fall in various asset
prices, the insolvency of various market participants with an impact on financial stability, and
other similar circumstances; the systemic scenario shall take account of the situation when
other banks are implementing recovery measures in the same period;
2. a description of the principal assumptions of the bank-specific stress scenario that occurs, for
example, as a result of the insolvency of significant counterparties, the loss of the bank’s
reputation, the sudden outflow of liquidity, a fall in prices of assets to which the bank has a
large exposure, and major losses from credit risk, market risk or operational risk;
3. an assessment of the effects of each stress scenario on the bank’s capital, liquidity, financial
position, profitability, capacity to execute transactions, and other aspects of the bank’s
operations;
4. an assessment of the feasibility, suitability and effectiveness of individual potential recovery
measures in the conditions of each stress scenario, with an assessment of the impact on
solvency, capital adequacy, liquidity, profitability, the unimpaired execution of transactions,
the bank’s reputation and other matters.
(3) In the case of a group, any obstacles to the implementation of measures at the level of the group
and at the level of individual entities in the group shall be identified for each of the stress scenarios.
Article 13
(communication and disclosure plan)
The communication and disclosure plan in connection with the implementation of recovery measures
shall encompass the following information at least:
1. a description of the internal exchange of information in connection with recovery measures,
with an indication of the recipients (including employee representatives), the method or
channel of the provision of information, and the purpose of or reason for the provision of
information;
2. a description of communication with external audiences and other stakeholders on which the
implementation of recovery measures could have an impact, including disclosures for
investors, the bank’s counterparties, the financial markets, market participants and
shareholders, and the general public. The purpose and method of communication shall be
defined for each stakeholder. When different stakeholders are informed in different
restructuring options, this shall be cited in the plan;
3. an assessment of the impact of potential reactions from various stakeholders to the
implementation of recovery measures, and an indication of potential measures in the event of
various stakeholders or markets responding negatively to the disclosure of the bank’s position
and the implementation of recovery measures;
4. a definition of the method of notification and the persons responsible for providing timely and
comprehensive information to the Bank of Slovenia or the European Central Bank on the
occurrence of grounds for the activation of the recovery plan, and on the actual recovery
measures and their potential escalation.
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Article 14
(preparatory measures)
The information on preparatory measures in connection with the implementation of the recovery plan
shall encompass the following information at least:
1. the measures taken or envisaged for the purpose of easing the implementation of the recovery
plan or increasing its effectiveness;
2. the impact of a particular preparatory measure on the elimination of any obstacles identified
to the implementation of various restructuring options;
3. the timeframe for the implementation of preparatory measures.
III. FINAL PROVISIONS
Article 15
(entry into force)
(1) This regulation shall enter into force on the day after its publication in the Official Gazette of the
Republic of Slovenia.
(2) This regulation shall cease to be applied upon the entry into force of the regulatory technical
standards referred to in the tenth paragraph of Article 5 of Directive 2014/59/EU in which the
information that must be included in the recovery plan is set out.
Ljubljana, 25 August 2015
PhD Janez Fabijan
Deputy-President,
Governing Board of the Bank of Slovenia
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