AI Summary of Article 11c Remediation plan
Where a credit institution fails to fulfil the commitments in the note referred to in Article 11b(1), in the business reorganisation plan referred to in Article 11b(8), fails to repay the amount contributed by the DGS under the preventive measures in Article 11(3) at maturity, or fails to comply with the exit strategy in Article 11b(6), the DGS shall inform the competent authority without delay.
In those circumstances the competent authority shall require the institution to submit a one‑time remediation plan to the designated authority and the DGS setting out steps and a timeframe to secure compliance with supervisory requirements, ensure long‑term viability and repay the DGS. The designated authority and the DGS shall consult the competent authority. If the plan is not credible or is not implemented, the competent authority shall inform the DGS and the resolution authority; the DGS shall not grant further preventive measures and the authorities shall assess whether the institution is failing or likely to fail under Article 32 of Directive 2014/59/EU. By 11 May 2029 the EBA shall issue guidelines on elements to be included in the business reorganisation plan and the remediation plan.
Article 11c Remediation plan
1. Member States shall ensure that where a credit institution fails to fulfil the commitments outlined in the note referred to in Article 11b(1), or in the business reorganisation plan referred to in Article 11b(8) or fails to repay the amount contributed by the DGS under the preventive measures referred to in Article 11(3) at maturity or to comply with the exit strategy under Article 11b(6), the DGS informs the competent authority thereof without delay.
2. In the circumstances referred to in paragraph 1, Member States shall ensure that the competent authority requests the credit institution to submit a one-time remediation plan to the designated authority and the DGS describing the steps the credit institution will take to secure compliance with supervisory requirements, to ensure its long-term viability and to repay the due amount contributed by the DGS to the preventive measures, as well as the associated timeframe. The designated authority and the DGS shall consult the competent authority as regards the measures envisaged in the remediation plan.