Recovery Plan as a Living Document, the Albanian Sight

The Recovery Plan is a document that introduces the possible measures of recovery that banks may take to restore the banks viability and provide business continuation as a response to the scenario that may pose threat to this continuation. The Recovery Plans (RPs) must include a comprehensive menu of recovery options that can be undertaken in case of idiosyncratic or systemic adverse scenarios. In this context, banks are also required to analyze the implementation risks and probability of success of these measures, as well as identify ways to mitigate these risks. The bank shall consider these measures as solutions of extraordinary nature, which shall not be taken during the normal conduct of business. Recovery Plans aim to reduce the probability of failure of systemically important banks in Albania. Banks in Albania, in preparing the Plans, have to consider the basic supposition that in this process no support of public funds (funds of tax payers) shall be provided to restore their financial health. The bank recovery plan either by the bank or by the supervisory authority should be viewed as a living, breathing document that can and should be updated frequently, as needed. In this way it will be kept realistic and practical aiming the minimization to zero of the public funding interventions.