Strategic Bank Recovery and Resolution Planning (BRRP) (10 Days)

Introduction

Recovery and resolution are critical global initiatives aimed at addressing the risks posed by major banking institutions. This Bank Recovery and Resolution Directive (BRRD) course covers the issues, tools, and techniques involved in creating and managing a Recovery and Resolution Plan (RRP), as well as the real-world challenges financial institutions face during the RRP process.

In the aftermath of the global credit crisis and the subsequent government bailouts of failing financial systems, Recovery and Resolution Planning (RRP) regulations are being implemented worldwide. Banks, building societies, and investment firms are now required to develop comprehensive Recovery Plans and Resolution Packs.

Objective

By the conclusion of this Bank Recovery and Resolution Planning (BRRD) course, participants will be able to:

• Describe essential elements of crisis preparedness and management.
• Recognize ailing banks and develop strategies to address them.
• Discuss key design features of effective resolution regimes and options for enhancement.
• Improve operational readiness for crisis situations.
• Identify stabilization options during financial panics and design credible response strategies.
• Discuss bank restructuring and resolution strategies at both the individual bank level and system-wide level.
• Evaluate viable alternatives in distressed asset management.

Training Methodology

• Interactive lectures on key concepts and strategies
• Case studies on real-world RRP scenarios
• Small group discussions for peer learning and experience sharing
• Crisis management role-playing simulations
• Response strategy workshops focusing on operational readiness
• Scenario-based problem-solving activities
• Expert-led Q&A sessions
• Ongoing feedback from instructors
• On-site evaluation of alternatives in managing distressed assets

Course Outline

Unit 1: Introduction – Bank Resolution within the SRM

• Contexts and principles of bank resolution
• Logistics and economic systemic bank insolvencies
• Policy developments since the global financial crisis

Unit 2: The BRRD and the SRMR

• Institutional Framework
• Recovery and Resolution Planning
• Resolution Action and Funding
• The interplay between European and national levels and the role of national insolvency legislation for less significant institutions

Unit 3: Structure, Key Principles, and Resolution Tools

• Overview and Objectives
• Resolution and the ‘Resolution Tools’
• Resolution Funding
• Cross-border coordination of resolution actions

Unit 4: Recovery Planning – A Banking Industry Perspective

• The Role of Planning
• Ongoing governance in recovery planning
• Iterative interactions with stakeholders and regulators

Unit 5: Improving the Usability of Recovery Plans

• Overall recovery capacity
• Playbooks and dry runs
• Interlinkages between recovery and resolution plans

Unit 6: Resolution Planning – A Practitioner Perspective

• Resolution planning and resolution plans
• Premises required for effective resolution planning
• Terms of construction of resolution plans
• Supervision versus resolution interaction and interdependencies
• Cross-border cooperation and its potential benefits

Unit 7: Selected Aspects of Resolution Planning – Insights, Results & Challenges

• Resolvability Assessment and mitigation of impediments
• Business continuity – operational and financial
• Separability analysis and business reorganization planning
• Incorporating communication concepts into RRP
• Dry runs and best practices to enhance readiness for resolution

Unit 8: Final Resolution Case & Integration

• Resolution case process
• “From Business as Usual to Orderly Wind Down”: roles and timelines