4.7.1 Restructuring

Section 3.7.1, discussed that the award of State aid to failing banks is, in principle, accompanied by a restructuring obligation. This is set out in a restructuring plan and can imply structural, behavioural or corporate governance measures. The restructuring is meant to limit distortion of competition and/or to safeguard the return to long-term viability. Under the resolution framework, no such explicit general restructuring obligation exists, unless the bail-in tool is used for recapitalisation purposes. However, the resolution framework provides for the possibility to impose an ex ante restructuring obligation through the recovery and resolution plan processes.