10.1.2 Structure of this chapter

The current chapter discusses characteristics that are relevant to the assessment of the degree of restructuring required. The degree of restructuring depends primarily on i) the aid amount, and ii) the question whether the bank’s difficulties were caused by endogenous problems or by external factors. The fact that the aid amount is high (or the opposite: that it is low) and the fact that the bank’s difficulties were caused by endogenous problems (or the opposite: caused by external factors) are thus relevant characteristics. These characteristics will be discussed in sections 10.3 and 10.5. In addition, far-reaching restructuring may be needed to compensate for a lack of own contribution. This will be the topic of section 10.4.

The chapter thus focusses on the question whether far-reaching restructuring is required. There is, however, a preceding question: i.e. the question whether a restructuring plan is required. Indeed, the degree of restructuring only becomes relevant when the beneficiary bank has to undergo restructuring in the first place. Although the Member State is usually obliged to submit a restructuring plan to the Commission for the beneficiary bank, a restructuring plan is not required in every bank State aid case. The question whether a restructuring plan is required will be discussed in section 10.2.