Recovery&Resolution — Bank Recovery & Resolution Reference

Regulatory position as of 27 September 2026SRB direct remit under SRMR Article 7(2)Future change · main substantive CMDI/SRMR III changes apply from 11 May 2028Open source ↗

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Recovery & Resolution Lifecycle

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LAWGUIDANCECASE PRACTICEINTERPRETATION

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No reasonable alternative measures

Second resolution condition.

Plain-language explanationINTERPRETATION

Even if the bank is FOLTF, resolution does not follow if another credible measure can still prevent the failure within a reasonable timeframe. The question is not whether one recovery option has failed; it is whether there remains any reasonable private-sector, supervisory or relevant write-down/conversion measure capable of averting failure in time.

Legal test / triggerLAW

SRMR Article 18(1)(b): having regard to timing and other relevant circumstances, there must be no reasonable prospect that alternative private-sector measures (including IPS measures) or supervisory action (including early intervention measures or write-down/conversion under Article 21(1)) would prevent the entity's failure within a reasonable timeframe.

Who assesses?LAW

For an SI in the SRB's direct remit, the SRB assesses this condition, in close interaction with the ECB as competent supervisor.

Who decides?LAW

The SRB determines whether the 'no reasonable alternative measures' condition is met for the Article 18 resolution decision.

Evidence / information neededINTERPRETATION

Credible capital-raising options and timing.
Sale, merger or private transfer options and market interest.
Funding and liquidity options that can actually be executed in time.
Remaining recovery-plan options and evidence of feasibility.
Supervisory / early-intervention measures and expected effect.
Feasibility and sufficiency of write-down/conversion of relevant instruments where applicable.
Operational, legal and execution constraints that make an option non-credible within the required timeframe.

The test is forward-looking and time-sensitive: theoretical options that cannot be executed in time are not enough.

Powers or tools availableINTERPRETATION

This is a decision gate, not a resolution tool. If a credible alternative exists, the resolution path stops and that alternative is pursued.

Relevant valuationINTERPRETATION

There is no separate statutory 'alternative-measures valuation'. Financial information and the Article 20 valuation can inform the assessment, but Article 18(1)(b) is its own legal test.

Possible next stepsLAW

Reasonable alternative exists: do not proceed to resolution on the current Article 18 basis; pursue the alternative/supervisory route.
No reasonable alternative exists: proceed to the Public Interest Assessment.

Related (demo data)

Recent developments

DEMO — Placeholder: national implementation development →

Regulatory updates

TODO — consultation paper →

Legal Sources

LAW

Regulation (EU) No 806/2014 — SRMR, consolidated 11 June 2026