Bank Recovery Planning Requirements Introduced

As part of the Isle of Man’s phased introduction of a Bank Recovery and Resolution framework, the Authority has introduced a requirement for locally incorporated banks to prepare recovery plans, which seek to help the bank recover from situations of severe financial stress.

A Guidance Note on the Recovery Planning process has been published and relevant banks will have up to twelve months to prepare an initial recovery plan, which must be subject to annual review by the bank’s board thereafter and also shared with the Authority.

Where considered appropriate, the Authority will also obtain and review the recovery plans for those banks which operate through branch structures on the Island, via the relevant home regulatory authorities.

More details on the approach to Bank Recovery and Resolution in the Isle of Man can be found here.