Recovery Planning Regulation: Annex

Indicators to be included in every recovery plan (Banks)

(Banks may justify replacing an indicator that is not sufficiently relevant to them with a suitable alternative indicator)

1. Capital indicators

a) Common Equity Tier 1 ratio (CET 1)

b) Total Capital ratio

c) Leverage ratio

2. Liquidity indicators

a) Liquidity Coverage Ratio (LCR) or Eligible Liquid Asset Ratio (ELAR)

b) Net Stable Funding Ratio (NSFR) or Loans to Stable Resources Ratio (LSRR)

c) Available central-bank eligible unencumbered assets

d) Liquidity position

e) Loan/financing-to-deposit ratio (LDR, FDR)

f) Asset encumbrance

3. Profitability indicators

a) Return on assets

b) Return on equity

c) Significant operational losses

4. Asset quality indicators

a) Growth rate of gross non-performing loans/financing

b) Coverage ratio [provisions ÷ (total non-performing loans/financing)]

5. Market-based indicators

a) Rating under negative review or rating downgrade

b) Credit Default Swaps spread

c) Stock price variation

6. Macroeconomic indicators

a) GDP variations

b) Credit Default Swap spreads of sovereigns