10.2.3.3 Other bank support schemes

In its decision on the Danish Compensation Scheme, the Commission approved the application of the scheme to banks with a balance sheet below EUR 3 billion. For larger banks (i.e. banks with a balance sheet of more than EUR 3 billion), an individual application was required.1 This is in line with points 83-86 of the 2013 Banking Communication. Point 84 provides that orderly liquidation schemes for banks of limited size can be approved, “provided they are well designed so as to ensure compliance with the requirements on burden-sharing by shareholders and subordinated debt-holders set out in point 44 and to remove moral hazard and other competition concerns”. Point 86 clarifies when a bank is ‘of limited size’: aid measures with total assets of more than EUR 3000 million must be individually notified for approval.

Under the Lithuanian asset relief scheme, Lithuania committed to provide restructuring plans for all beneficiaries of the asset relief measure which require in-depth restructuring pursuant to Section 6 of the IAC and viability plans for all others (including information regarding valuation in both cases) within three months from the beneficiary’s accession to the scheme.2