11.13.3 Implications for the Member States and beneficiary banks

How can a Member State in a future bank State aid case convince the Commission that the beneficiary bank will return to long-term viability?

Point 11 of the Restructuring Communication stipulates that the restructuring plan should provide information on – amongst other – the business model of the beneficiary bank, its organisational structure, funding, corporate governance, risk management and the remuneration incentive structure. These elements corresponds to the relevant characteristics discussed in the present chapter. The analysis of the decisional practice reveals that these elements are taken into account by the Commission. Indeed, the present chapter has shown that the Commission notes positively the fact that the corporate governance framework, risk management, remuneration policy, funding and operational efficiency of the bank will be improved.

The implications for the Member States and beneficiary banks are thus relatively straightforward. They should either stress that the restructuring plan includes measures to improve the corporate governance, risk management, remuneration policy, funding and operational efficiency, or stress that the bank did not experience problems on these aspects.