A recovery and resolution plan (RRP) covers a financial institution in its entirety. International financial institutions are governed according to the applicable local laws. The planning contributes in particular to the recognition and dismantling of obstacles to successful restructuring arising from cross-border activity. That is how the conditions are created to restructure international financial institutions or resolve them in an orderly manner without destroying value or interrupting systemically important functions.
As crises can escalate very quickly, the timing aspect plays a key role in recovery and resolution planning. Systemically important banks must make the required preparations to implement the planned measures promptly.