Measures in the event of deficiencies in recovery plans

(1) Where the supervisory authority comes to the assessment that the recovery plan does not satisfy the requirements of sections 13 and 14, or that material impediments stand in the way of its implementation, it communicates its assessment results to the institution or the superordinate undertaking of a group concerned and calls on the institution or the superordinate undertaking to submit a revised recovery plan within two months. On application, the supervisory authority may extend this time limit by up to one month.
(2) In the revised recovery plan, the institution or superordinate undertaking must set out how the deficiencies identified by the supervisory authority are to be remedied. Before requiring a revised recovery plan, the institution or superordinate undertaking must be heard by the supervisory authority. Where the supervisory authority is of the opinion that the inadequacies and impediments have not been adequately remedied by the revised recovery plan, it may direct the institution or superordinate undertaking to make specific changes to the recovery plan.
(3) Where the institution or superordinate undertaking concerned does not submit a revised recovery plan, or where the supervisory authority concludes that the inadequacies or potential impediments identified in its original assessment have not been adequately remedied by the revised recovery plan, and where the inadequacies or impediments cannot be adequately remedied by directing specific changes to be made to the plan, the supervisory authority may require the institution or superordinate undertaking to notify, within a reasonable time limit, the changes to its business activities by which the inadequacies or impediments that would make recovery impossible or materially more difficult in a crisis situation (impediments to recovery) can be remedied.
(4) Where the institution or superordinate undertaking does not notify any changes that it can make to its business activities to remove impediments to recovery, or where the supervisory authority comes to the assessment that the impediments to recovery cannot be adequately remedied by the measures proposed by the institution or superordinate undertaking, the supervisory authority may direct the institution or superordinate undertaking to take measures that it considers necessary and proportionate, having regard to the severity of the inadequacies and impediments and the effects of the measures on the institution's business activities, to remove the impediments to recovery.
(5) The supervisory authority may, in particular, require the institution or superordinate undertaking under subsection (4) to 1. reduce its risk profile, including its liquidity risk, 2. take measures to enable the timely initiation of recapitalisation measures, 3. review its business strategy and organisational structure, 4. make corrections to its funding strategy in order to increase the resilience of its material business activities and critical functions, or 5. change the organisation of its corporate governance so that options for action from the recovery plan can be implemented in a timely and expeditious manner. This does not affect the power of the supervisory authority to issue measures under the Banking Act and sections 36 to 39.
(6) A measure to be ordered under subsections (4) and (5) is, in particular, 1. necessary where the impediments to recovery identified can no longer be remedied in time in the event of an impending stress situation, and there is therefore a risk that, should a crisis situation occur, a threat to the institution's continued existence can no longer be effectively avoided, and 2. proportionate where the burdens associated with the direction stand in a reasonable relationship to the systemic risk arising from a threat to the institution's continued existence.
(7) Before issuing a direction under subsections (4) and (5), the supervisory authority coordinates with the resolution authority regarding possible measures under section 59(5). The administrative act requires written form.
(8) Where the recovery plan is drawn up by an institutional protection scheme under section 20(4), the powers referred to in subsections (1) and (2) are vested in the supervisory authority vis-à-vis the institutional protection scheme.