Public funding of failing banks in the European Union (LBF vol. 19) 2020/3.7.2.1:3.7.2.1 The winding up plan

Public funding of failing banks in the European Union (LBF vol. 19) 2020/3.7.2.1

3.7.2.1 The winding up plan

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When aid is provided to the bank to assist in winding up the bank in an orderly manner, a winding up plan will have to be submitted by the Member State to the Commission. This plan should indicate how the bank can be wound up in an orderly fashion. The plan should furthermore identify the causes of the difficulties faced by the bank. Also, a monitoring trustee, a divestment trustee or both may be appointed in certain cases to ensure compliance with any conditions and obligations underpinning the authorisation of the liquidation aid.1

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