Public funding of failing banks in the European Union (LBF vol. 19) 2020/4.8.1.4:4.8.1.4 Safeguards

Public funding of failing banks in the European Union (LBF vol. 19) 2020/4.8.1.4

4.8.1.4 Safeguards

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

The safeguards provide that, where resolution authorities transfer only parts of the rights, assets and liabilities issued by the bank in resolution, the shareholders and those creditors whose claims have not been transferred, receive in satisfaction of their claims at least as much as what they would have received, if the bank in resolution had been wound up in normal insolvency proceedings at the time when the resolution decision was taken.1 For this purpose, a valuation (Valuation 3) is carried out.2

In addition, counterparties to title transfer financial collateral arrangements, set-off and netting arrangements, security arrangements, structured finance arrangements and covered bonds3 are protected, if a resolution authority transfers some but not all of the assets, rights or liabilities of a bank in resolution to another entity.4 This applies irrespective of the number of parties involved in the arrangements.5 The protection entails that the partial transfer of the covered assets, rights or liabilities under these arrangements is prevented, unless this is necessary to ensure availability of the covered deposits.6 In addition, if a resolution authority transfers some but not all of the assets, rights or liabilities of a bank in resolution to another entity, this may not affect the operation and rules of clearing and settlement systems.7

Deze functie is alleen te gebruiken als je bent ingelogd.