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Public funding of failing banks in the European Union (LBF vol. 19) 2020/4.4.3.1
4.4.3.1 The sale of business tool
M. Louisse-Read, datum 01-06-2020
- Datum
01-06-2020
- Auteur
M. Louisse-Read
- JCDI
JCDI:ADS213825:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Staatssteun (V)
Voetnoten
Voetnoten
Article 38(1) BRRD.
Central Bank of Hungary, Summary to the decision No. H-SZN-I-6/2015. of the Central Bank of Hungary on the application of the sale of business tool in the ongoing resolution process in respect of MKB Bank Zrt; Central Bank of Hungary, Summary to the decision No. H-SZN-I-28/2015. of the Central Bank of Hungary on the application of the sale of business tool in the ongoing resolution process in respect of MKB Bank Zrt; Central Bank of Hungary, Summary to the decision No. H-SZN-I-27/2015. of the Central Bank of Hungary on the application of the sale of business tool in the ongoing resolution process in respect of MKB Bank Zrt.
Banco de Portugal, Information on Banif – frequently asked questions, 15 January 2016.
State Agency for Deposit Insurance and Bank Resolution, Public Call for Expression of Interest for the Acquisition of 100% of the Ordinary Shares of Jadranska Banka d.d. Sibenik.
SeeNews, Croatia's c-bank approves acquisition of Jadranska Banka by HPB, 5 July 2018.
Bank of Greece, Transfer of Cooperative Bank of Peloponnese Coop Ltd deposits to the National Bank of Greece S.A., 18 December 2015.
EC, State aid: Commission approves resolution aid for the resolution of Greek Panellinia Bank, STATEMENT/15/4799, 17 April 2015.
SRB, Notice summarising the effects of the resolution action taken in respect of Banco Popular Español pursuant to Article 29(5) SRMR, 7 June 2017.
The sale of business tool entails the power of a resolution authority to transfer (once or more than once) to a purchaser that is not a bridge institution (a) shares or other instruments of ownership issued by a bank in resolution, or (b) all or any assets, rights or liabilities of a bank in resolution.1 The application of the sale of business tool is discussed in more detail in section 4.5.3.
The sale of business tool has so far been applied in Hungary, Portugal, Croatia, Greece and Spain.
The Hungarian bank MKB Bank was put in resolution on 18 December 2014. According to the resolution strategy determined by the Central Bank of Hungary, as the designated national resolution authority, the preferred resolution tool was the sale of business tool for divesting certain portfolio elements from MKB Bank. Nine loan claims were sold to third parties, including other banks.2
On 20 December 2015 the Government and Central Bank of Portugal decided to sell, as part of a bank resolution, most of the assets and liabilities of BANIF to Banco Santander Totta for EUR 150 million.3
In Croatia, the sale of business tool was applied in order to sell 100% of the ordinary shares in Jadranska Banka.4 At the time of writing this dissertation, Croatia’s central bank had given approval to Hrvatska Postanska Banka for the acquisition of 100% of the shares in Jadranska Banka.5
In Greece, the sale of business tool was applied to Bank of Pelo ponnese and Panellinia Bank. All deposits of Bank of Peloponnese were transferred to National Bank of Greece.6 In addition, selected activities of Panellinia Bank have been transferred and integrated into Piraeus Bank, following an open and non-discriminatory sales process.7
On 7 June 2017, the SRB adopted a resolution scheme in respect of Banco Popular providing for the application of the sale of business tool to the bank. In the first resolution scheme adopted by the SRB it decided to transfer Banco Popular to Banco Santander.8