13.2.4 Concluding remarks

As was discussed in section 10.2, the aid intensity was used as an indicator for the soundness of the bank: if the aid was above 2% of the beneficiary bank’s RWA, then the bank was considered to be distressed, and consequently, a restructuring plan had to be submitted. The 2%-threshold lost its relevance after the First Prolongation Communication. Nevertheless, the aid intensity remained very relevant, since it was not only used as an indicator for the soundness of the bank; as is explained in the present section, the relative aid amount is also used as an indicator of the need for compensatory measures.