The subject of research work is the changes in the regulatory framework of the recovery plan for smaller credit institutions and the application of a standardized report in order to assess the overall recovery capacity. The paper contains an analysis of the new regulatory framework related to the prescribed indicators (minimum rates, calibration, monitoring and updating) and their impact on the overall recovery capacity based on selected recovery measures for smaller credit institutions. Additionally, the importance of determining the sensitivity of the function of early warning indicators and their role in enabling the timely and efficient undertaking of recovery measures (before supervisory intervention) was highlighted. The new regulatory framework was also analysed from the aspect of the updated area of recovery plans as an assessment of the total overall recovery capacity of credit institutions, the application of a standardized report for the purpose of the overall recovery capacity and the deadlines for delivery of the recovery plan. There are increasingly significant challenges in monitoring and implementing regulatory changes in the existing and new frameworks governing the supervision of operations of smaller credit institutions, regardless of the principle of proportionality applied by the European Banking Authority (EBA). Therefore, in the paper, research was conducted on a sample of ten small credit institutions (hypothetical examples with assumed parameters) regarding the application of a standardized report in order to measure the overall recovery capacity. The research indicated that the implementation of the new regulatory changes of the recovery plan represents a significant challenge for smaller credit institutions. The conducted research is suggesting that an increased dialogue is needed between smaller credit institutions and the independent competent national body (Croatian National Bank), in order for smaller credit institutions to adopt the regulatory changes of the recovery plan more practically and faster.