Supervisors must remind institutions that it is initially the bank's job to address any deviations from Pillar 1 assumptions, as well as any additional factors that affect the risk of the individual bank, and to adjust their minimum regulatory capital accordingly.
Moreover, supervisors should be actively working with resolution authorities to address impediments to resolvability. This is not without its challenges, but if a bank is only surviving because it is not resolvable, it is not viable, and requires appropriate supervisory intervention Supervisors now also review recovery plans, prepared by banks which map out what they will do if they get into difficulty.