Regulatory Alerts2023-10-30
Recovery Planning Regulation
The Central Bank of the UAE issued the Recovery Planning Regulation to mandate that licensed financial institutions, including banks and insurance companies, develop and maintain comprehensive recovery plans to ensure resilience during severe financial stress. The regulation defines key terms, outlines the scope of application, and requires plans to include governance frameworks, stress testing, recovery options, and communication strategies tailored to the institution's complexity and critical functions. It further establishes group-level recovery planning requirements, specifies the use of central bank liquidity facilities, and defines enforcement mechanisms and sanctions for non-compliance.
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