General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
June 07, 2017

EC approved, under the EU bank recovery and resolution rules, the resolution scheme of Banco Popular Español, S.A. based on a proposed resolution scheme by the Single Resolution Board (SRB). This is the first resolution action taken by SRB under the Bank Recovery and Resolution Directive (BRRD), with EC approval. SRB has transferred all shares and capital instruments of Banco Popular to Banco Santander S.A. This means that Banco Popular will operate under normal business conditions as a solvent and liquid member of the Santander Group. The resolution scheme entered into force on June 07, 2017.

The resolution of Banco Popular Español, S.A. was approved under EU's bank recovery and resolution rules, as agreed in the post-crisis Banking Union framework. This involves the sale of Banco Popular Español, S.A. to Banco Santander, which is a sound financial institution. This was the best course of action to ensure continuity of important functions performed by the bank and to avoid significant adverse effects on financial stability. In this specific case, losses were fully absorbed by shares and subordinated debt. The customers of Banco Popular will continue to be served with no disruption to the economy. All depositors continue to have uninterrupted access to the full amount of their deposits. Following the resolution decision, the bank can continue its business activities. No state aid nor aid from the Single Resolution Fund has been provided and the sale is subject to normal merger and regulatory review. The EC has endorsed this resolution scheme because the conditions for resolution were met: the bank was failing, there were no private sector solutions outside of resolution, and there were no supervisory actions that would have prevented its failure. Resolution by sale of business is foreseen in the BRRD under the EU bank resolution framework.
Since the BRRD entered into force on January 01, 2015, a resolution authority can decide to resolve a bank, provided it deems that it is in the public interest to do so. For banks that are subject to the Single Supervisory Mechanism (SSM), under the Single Resolution Mechanism Regulation, it is for the SRB to determine that a bank should undergo resolution in case the bank is failing or likely to fail, there are no alternative private solutions or supervisory actions that would prevent its failure, and a resolution action was necessary in the public interest. In that case, it transmits a resolution scheme to the EC for approval.


Related Links

EC Press Release

SRB Press Release

ECB Press Release

Keywords: Europe, EC, Banking, BRRD, SRB, Resolution Framework


Related Insights

OFR Adopts Data Collection Rule on Centrally Cleared Repo Transactions

OFR adopted a final rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market.

February 20, 2019 WebPage Regulatory News

FHFA Finalizes Rule on Federal Home Loan Bank Capital Requirements

FHFA published, in Federal Register, the final rule to adopt, as its own, portions of the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the Federal Home Loan Banks.

February 20, 2019 WebPage Regulatory News

SRB Publishes Framework for Performing Valuations in Resolution

The framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.

February 19, 2019 WebPage Regulatory News

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News

SEC Proposes Rule on Risk Mitigation Techniques for Uncleared SBS

SEC proposed a rule that would require the application of specific risk-mitigation techniques to portfolios of security-based swaps (SBS) that are not submitted for clearing.

February 15, 2019 WebPage Regulatory News

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News

FASB Proposes Taxonomy Improvements for the Credit Losses Standard

FASB proposed the taxonomy improvements for the proposed Accounting Standards Updates on Targeted Transition Relief for Topic 326 (Financial Instruments—Credit Losses) and Topic 805 (on Business Combinations—Revenue from Contracts with Customers).

February 14, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2617