GUIDELINES REGARDING THE BANK RECOVERY AND RESOLUTION DIRECTIVE AND RESPONSIBILITY IN THE BANKING ACTIVITY (II)
GUIDELINES REGARDING THE BANK RECOVERY AND RESOLUTION DIRECTIVE AND RESPONSIBILITY IN THE BANKING ACTIVITY (II)

Summary/Abstract: The financial support from the state in the banking sector should be limited, should resume to the minimum required, in order to diminish the impact on the competition in the internal market. It is considered that the state support may lead to the subversion of discipline and responsibility of subjects on the banking market. At the same time, such a support may create a state of moral hazard. The internal recapitalization is a necessary and reasonable measure. The entire procedure of internal recapitalization must be completed observing the principle ld have sustained in case the institution in resolution would have been liquidated through the usual insolvency procedure according to the safety mechanisms".

• Details
• Contents