New rules for forced restructuring of banks
The Sejm passed amendments to the Act on the Bank Guarantee Fund, deposit guarantee scheme and forced restructuring. The introduced changes are to adjust the existing law to the EU regulations.
The adopted provisions are to streamline the process of forced restructuring, in particular as regards debt write-offs and conversions. Moreover, they provide for a systemic exclusion of mortgage banks from the regulations concerning the functioning of the deposit guarantee scheme. They also enable the use of the so-called bridge institution for the restructuring of the affiliating bank, as well as regulate the conditions for undertaking activities in the field of restructuring of cooperative savings and credit unions.
The Act proposes to extend the options for management of financial resources of the Bank Guarantee Fund by enabling free funds to be deposited with the Minister of Finance. At the same time, guarantee protection has been provided for funds held in bank accounts by parents’ councils operating at schools.
In addition, the Act reduces restrictions related to forced restructuring instruments (e.g. closure of accounts, transfer of equity rights and preparation of forced restructuring programmes).
Source: businessinsider.com.pl/knowledge/newly-principles-forced restructuring of banks/r03cdyx