What is a bank resolution?

Resolution is a procedure that ensures the orderly liquidation of banks and involves a series of measures used by the competent authorities as an alternative to bankruptcy proceedings. It is aimed to prevent a failure of a given bank from evolving into a systemic banking crisis and minimise the cost to taxpayers for supporting banks.

Resolution measures represent intervention in an institution facing financial difficulties at a pre-insolvency stage and before the activation of the TEKE payout process. The resolution tools available in Greece are the following:

  • transfer order,
  • bridge institution tool,
  • asset separation tool,
  • bail-in tool.

It should be noted that the covered deposits are safeguarded in the implementation of all resolution measures.