Recovery planning

(1) Institutions that are not exempted under section 20(1) must draw up a recovery plan. In the recovery plan, the institution must set out the measures to be taken by it by which financial stability can be safeguarded or restored, should its asset, financial or earnings position deteriorate materially and that deterioration be capable of threatening its continued existence (crisis situation).
(2) Where the institution is part of a group, subsection (1) applies with the proviso that only the superordinate undertaking must draw up a recovery plan covering the entire group, unless section 14 provides otherwise.
(3) The supervisory authority calls on institutions to submit a recovery plan and sets a time limit for this, which may not exceed six months; on application by the institution, the supervisory authority may extend the time limit by up to six months. In the request, the supervisory authority must also state whether simplified requirements apply to the institution as regards the content and level of detail of the recovery plan under section 19(1), point 1, and as regards the time limit for updating the recovery plan under section 19(1), point 2. Institutions submit the recovery plan to the supervisory authority and to the Deutsche Bundesbank.
(4) Institutions must update their recovery plan and transmit it to the supervisory authority and the Deutsche Bundesbank after every change to the legal or organisational structure of the institution, its business activities, or its asset, financial or earnings position, or after every change in the general risk situation that could materially affect the institution's recovery plan or otherwise makes its amendment necessary, but must transmit it at least annually. The supervisory authority may require an institution to update its recovery plan more frequently.
(5) Subsections (3) and (4) apply correspondingly to the superordinate undertaking of a group.