11.1.4 Structure of this chapter

The following sections discuss the characteristics that are relevant to the viability-assessment. These relevant characteristics concern the replacement of the bank’s senior management (see section 11.2), the corporate governance framework (see section 11.3), the remuneration policy (see section 11.4), the risk management (see section 11.5), the funding strategy (see section 11.6), the operational efficiency (see section 11.7) and the business model (see section 11.8). Section 11.9 focuses on a specific viability-measure: asset relief. Sections 11.10 and 11.11 address the situation in which a bank is taken over by another bank. Furthermore, the Restructuring Communication provides that the restructuring plan should demonstrate how the bank will restore its long-term viability without State aid as soon as possible; this will be discussed in section 11.12.

Almost every section of this chapter is dedicated to a specific relevant characteristic. With respect to each relevant characteristic, the following questions will be addressed: Firstly, why is this a relevant characteristic? Secondly, has the Commission consistently taken into account this relevant characteristic? Thirdly, how is this relevant characteristic elaborated in the decisions? Every section concludes with some concluding remarks: in these subsections, a summary of the main findings is given as well as a discussion of the implications (of the main findings) for the Commission and the beneficiary bank/Member State.

Thus, the sections of this chapter are structured in the same way and the structure of each section is based on the above-mentioned questions.1 It should be noted that section 11.2 is more extensive than the other sections, because this section explains how I approach the above-mentioned questions. In that regard, section 11.2 is very instructive.