7.3.2 Cooperation between the authorities

The concurrence of the restructuring processes under the State aid regime for the banking sector and the resolution framework inevitably requests cooperation between the different authorities involved. The competent authority and resolution authority can, for example, require a bank to restructure on the basis of an assessment of the recovery and/or resolution plan, while it is still financially sound. The bank may request for State aid at a later stage. Another example can be found in the obligation for a bank to draw up the business reorganisation plan when the bail-in tool is applied for recapitalisation purposes. This plan is assessed by the resolution authority in agreement with the competent authority. When the application of the bail-in tool is accompanied by the award of State aid, the Commission is also involved. This section takes a further look into the cooperation between the resolution authority and the Commission.