7.5.2.1 Divergence in restructuring processes

Firstly, a bank put in resolution with the aid of State aid can be confronted with diverging restructuring processes as a result of colliding competences, as referred to in section 7.5.3.1. In addition, a bank can be faced with restructuring obligations under the State aid regime for the banking sector, while there are no restructuring obligations under the resolution framework. For example, the resolution framework does not provide for a restructuring process in the case of precautionary recapitalisation. As a result, the restructuring process in case of precautionary recapitalisation is solely governed by the State aid regime for the banking sector; there is no role for the resolution authority in that respect. Also, in all resolution cases, besides the application of the bail-in tool as a going concern solution, restructuring obligations are solely imposed under the State aid regime for the banking sector, even if resolution involves the award of State aid. The only exception being the removal or replacement of the management body and senior management.