Resolution of Credit Institutions
The resolution of a credit institution may occur when the CBCG determines that a credit institution that is experiencing difficulties in regular business operations cannot go through regular bankruptcy proceedings without harming the public interest and causing financial instability. In order to properly manage the stability of the financial system, the CBCG can use resolution tools that will:
- ensure the continuity of critical functions of the credit institution,
- maintain financial stability,
- restore the vitality of parts or the entire credit institution.
With the adoption of the Law on Resolution of Credit Institutions, a number of measures and tools were adopted to harmonise and improve the possibilities of the CBCG in terms of potential problems in the operations of individual credit institutions, as well as management during banking crises.