Mandatory Bank Restructuring in an Effort to Ensure the Survival of Market-Making Bank Activities

EasyChair Preprint 7342

Abstract

Compulsory banks’ restructuring is a relatively new solution introduced onto the ground of national legislation in connection with EU requirements. The mechanism of resolution is also an attempt of a response to the financial crisis that took place in 2007-2008. The basic aim of compulsory restructuring is to ensure continuity of provision of banks’ critical functions. The purpose of the research is to indicate whether relevant applicable legislation and steps already taken in practice allow the implementation of the basic objective of the resolution process. The research hypothesis was based on an assumption that ensuring continuity of critical functions of a bank that found itself in a bad financial standing is an important element used to stabilize the situation on the banking market. By ensuring critical functions, the requirement launching the payment of guaranteed funds to the depositors will not be met and it will be possible to use solutions which will affect the entire financial market to a smaller degree. The analysis covers currently applicable legislation in the context of mechanisms of compulsory restructuring used in practice. The adopted research methodology was based on the analysis of texts of legal acts that are key to the discussed subject- matter, with reference to selected views expressed in the literature. It needs to be concluded that the method of analysis of applicable law and the case study method were used as the basic research methods.

Keyphrases: Bank, Bridge Institution, Compulsory Restructuring

@booklet{EasyChair:7342,
  author    = {Abdullah S. Abdullah},
  title     = {Mandatory Bank Restructuring in an Effort to Ensure the Survival of Market-Making Bank Activities},
  howpublished = {EasyChair Preprint 7342},
  year      = {EasyChair, 2022}}