Interes publiczny i ochrona klienta w przymusowej restrukturyzacji banku
Public interest and customer protection in bank resolution

Author(s): Andrzej R. Stopczyński
Subject(s): Financial Markets
Published by: Wydawnictwo Uniwersytetu Łódzkiego
Keywords: bank failure; bank resolution; BRR directive; loss absorption; public interest premise; customer protection in the financial services market
Summary/Abstract: The book, entitled Public interest and customer protection in bank resolution, attempts to assess the forced restructuring mechanism in the European Union from the perspective of its causes (public interest) and potential consequences for the customers of failing banks. The research presented is based on a review of banks assessed as failing or likely to fail in the European Union between 2015 and 2022, after the adoption of the BRR Directive. In particular, the decisions activities of the Bank Guarantee Fund concerning the Polish cases of bank resolution are presented and assessed.The book presents an analysis of the identification of the public interest as a premise triggering resolution, as well as the impact of the resolution mechanism on the protection of failing bank’s customers. A substantial part of the research was conducted using quantitative methods.The results suggest that the local character of the bank may be an important factor influencing the positive assessment of the public interest premise by national resolution authorities. Furthermore, it was shown that an important criterion for choosing the resolution path was to preserve the highest possible asset value of the restructured bank. The theoretical model developed by the author with a cost-based utility function provides strong arguments for the universality of this conclusion.The objectives identified in the BRRD seem to coincide with the demand to protect customers of failing or likely to fail banks, although this demand does not appear directly in the text of the directive. However, there is a possibility that unclear provisions on the assessment of the public interest rationale may result in attempts to contest the resolution authority’s decision.

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