3.3.7 Facilitating a transfer of (part of) the beneficiary bank

When a beneficiary bank cannot continue as a viable standalone entity, the Member State may choose to facilitate the transfer of (parts of) the beneficiary bank to another larger bank. In such a case, the value of the transferred assets usually exceeds the value of the transferred liabilities – the difference is the so-called ‘funding gap’. By covering this funding gap, the Member State facilitates the transfer and thus the rescue of (parts of) the beneficiary bank.