Authorities should have actionable and flexible resolution tools at their disposal to be applied. For this, an adequate legal environment ensuring the good end of the resolution action is critical. The resolution of Banco Popular is the most relevant precedent since the BRRD was approved. This resolution procedure was executed using the Sale of Business tool and it enabled the adaptation of various strategies to align with a more realistic perspective. As part of this process, it was evident that there is a need to explore the combination of tools, as a variant resolution tool. In a banking crisis, actions must be taken as quickly as possible to prevent the entity from going into further deterioration and increasing the risk of contagion and ultimately impacting stability. This is even more important in an increasingly digital environment where customers can over-react and generate a fast-moving crisis.

错误:搜索内容不能为空,请输入英文关键词
错误:关键词超出字数限制,请精简
高级检索

Sale of Business Tool from the Experience Gained in the Banco Popular Case

  • Monica Lopez-Monis Gallego,
  • Isabel Garcia Mora,
  • Jose Luis Albasanz,
  • Andres Alfaro,
  • Sofia Martinez Berrocal

摘要

Authorities should have actionable and flexible resolution tools at their disposal to be applied. For this, an adequate legal environment ensuring the good end of the resolution action is critical. The resolution of Banco Popular is the most relevant precedent since the BRRD was approved. This resolution procedure was executed using the Sale of Business tool and it enabled the adaptation of various strategies to align with a more realistic perspective. As part of this process, it was evident that there is a need to explore the combination of tools, as a variant resolution tool. In a banking crisis, actions must be taken as quickly as possible to prevent the entity from going into further deterioration and increasing the risk of contagion and ultimately impacting stability. This is even more important in an increasingly digital environment where customers can over-react and generate a fast-moving crisis.