Recital (34)

To ensure that credit institutions receiving support from DGSs in the form of preventive measures deliver on their commitments, competent authorities should request a remediation plan from credit institutions that have failed to fulfil the commitments outlined in their note or business reorganisation plan, failed to repay the amount contributed under the preventive measures, or failed to comply with the exit strategy. Where a competent authority considers that the measures in the remediation plan are not capable of achieving the credit institution’s long-term viability, or where the credit institution fails to comply with the remediation plan, the DGS should not provide any further preventive support to the credit institution and the relevant authorities should carry out an assessment pursuant to Directive 2014/59/EU of whether the institution is failing or is likely to fail. To ensure a consistent approach to the application of preventive measures across the Union, EBA should issue guidelines to assist credit institutions to draft remediation plans.