Early intervention Recovery and Resolution Act (SAG)
Early intervention measures
Should an institution’s financial situation deteriorate (but the conditions for entry into resolution are not met yet), the supervisor has extensive early intervention powers at its disposal under the Recovery and Resolution Act in addition to those which it may exercise under the Banking Act (Kreditwesengesetz, KWG). One such early intervention measure available to supervisors is the power to require the management body in its management function of a particular bank to implement one or more arrangements or measures set out in the recovery plan or to change the business strategy. Should the supervisor find the management body in its management function unfit to perform its duties, it may even call for the removal of one or more members in the context of early intervention measures.