Initial Draft German Legislation on Recovery and Resolution Planning for Banks

January 23, 2013

The German Federal Ministry of Finance (Bundesministerium für Finanzen) has authored an initial Draft Bill on Recovery and Resolution Planning for Credit Institutions and Banking Groups (Entwurf eines Gesetzes zur Sanierungs- und Abwicklungsplanung von Kreditinstituten und Finanzgruppen) dated December 2012. The Draft Bill deals with recovery plans and resolution planning for banks and banking groups and is modeled on the requirements applicable to recovery and resolution plans set forth in the “Key Attributes of Effective Resolution Regimes for Financial Institutions” published by the Financial Stability Board on November 4, 2011. The Draft Bill preempts in part the implementation into German law of the European directive establishing a framework for the recovery and resolution of credit institutions and investment firms, a draft of which was published by the European Commission on June 6, 2012.

Please find attached an Alert Memorandum summarizing the Draft Bill, and highlighting certain questions raised by it. Please feel free to distribute the attached materials within your institution as you see fit.

Should you or your colleagues have any questions in connection with the German or EU crisis management regime, please feel free to contact Dr. Gabriele Apfelbacher( or Michael Kern( at the Frankfurt office of Cleary Gottlieb or any of our partners and counsel listed under “Germany”, “Lawyers in this Practice”, under the “Practices” section, “Regions”, of this website.