| 1. | The financial institution shall, within 180 days from the date of the request of the competent authority, prepare a recovery plan of the steps and procedures to be taken towards recovering its financial position upon exposure to fundamental changes with a negative impact.
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| 2. | If the financial institution is a holding company, it shall prepare a recovery plan for the financial group and a recovery plan for each subsidiary financial institution.
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| 3. | The recovery plan must include:
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| | a) | a summary of its key components and an indication of the financial institution’s ability to recover;
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| | b) | a summary of the fundamental changes in the financial institution since the last recovery plan submitted to the competent authority;
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| | c) | an outreach and disclosure plan to address any anticipated negative reaction from the markets as a result of the impact of the fundamental changes on the financial institution;
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| | d) | steps to recover capital and liquidity requirements, preserve the financial institution, and regain its financial position;
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| | e) | an estimation of the timeframe required to implement the primary components of the plan;
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| | f) | a detailed description of potential risks which may hinder implementation;
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| | g) | identification of the critical activities provided by the financial institution;
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| | h) | a detailed description of procedures for determining the market value of each activity in the financial institution as well as its operations and assets, and their potential to be marketed and sold;
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| | i) | arrangements and procedures to obtain liquidity, including identification of potential sources for liquidity and evaluation of the guarantees available for acquiring such liquidity;
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| | j) | arrangements and procedures for rescheduling and restructuring debts or for restructuring the institution activities and reducing any potential risks;
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| | k) | arrangements and procedures required to ensure the continued operation of settlement systems;
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| | l) | arrangements necessary for the sale of certain assets or activities of the financial institution in order to recover its financial position within an appropriate time; and
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| | m) | governance procedures of the plan, including identification of persons in charge of its preparation and implementation.
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| 4. | The competent authority may require the financial institution to include in its recovery plan quantitative and qualitative indicators reflecting the position of the financial institution, as well as the actions the institution may take with regards to each indicator in order to recover its financial position.
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| 5. | The competent authority may include in the Implementing Regulations additional rules and provisions governing the preparation and implementation of the plan.
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