Member States must require institutions subject to recovery‑plan obligations to submit plans to the competent authority, which shall review each plan within six months of submission and consult competent authorities of Member States where significant branches are located. The review must assess whether proposed arrangements are reasonably likely to maintain or restore the institution’s or group’s viability and financial position and whether plan options are capable of rapid and effective implementation in stress, including concurrent systemic scenarios; the authority shall take into consideration the appropriateness of the institution’s capital and funding structure. The competent authority must provide the recovery plan to the resolution authority, which may examine it for resolvability impacts and make recommendations.

Where material deficiencies or impediments are identified the competent authority shall require a revised plan within three months (extendable by one month) and give the institution an opportunity to state its opinion; it may direct specific changes if the revision is inadequate. If deficiencies cannot be remedied by revision, the authority may require the institution to identify business changes or may direct proportionate measures, including reducing risk profile, enabling timely recapitalisation, reviewing strategy and structure, changing funding strategy and governance. Such measures must be reasoned, proportionate, notified in writing and subject to a right of appeal. The EBA shall submit draft regulatory technical standards on minimum assessment criteria to the Commission by 3 July 2015, with delegated power for adoption.