Public funding of failing banks in the European Union (LBF vol. 19) 2020/4.8.1.2:4.8.1.2 Consideration

Public funding of failing banks in the European Union (LBF vol. 19) 2020/4.8.1.2

4.8.1.2 Consideration

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 consideration paid for a share transfer or an asset transfer is based on the ex ante valuation (Valuation 2). Where a provisional valuation was made instead of an ex ante valuation, the consideration can be adjusted based on the ex post valuation, if the valuation’s estimate of the net asset value (NAV) of the bank in resolution is higher than the provisional valuation’s estimate.1

Any consideration paid for a share transfer by the purchaser (under the sale of business tool) or the bridge institution (under the bridge institution tool) benefits the owners of the shares or other instruments of ownership that are transferred.2 Any proceeds generated as a result of the termination of the operation of the bridge institution benefit the shareholders of the bridge institution. The resolution authority and any resolution fund may recover any reasonable expenses properly incurred in connection with the use of the bridge institution tool from these proceeds as a preferred creditor.3

Any consideration paid for an asset transfer by the purchaser, bridge institution or asset management vehicle benefits the bank in resolution or the bridge institution, where applicable.4 In case of application of the asset separation tool, this may be paid in the form of debt issued by the asset management vehicle.5

Deze functie is alleen te gebruiken als je bent ingelogd.