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Annual report of the Bank Guarantee Fund
2020
In 2020, representatives of the Fund participated in the meetings of four resolution colleges for banking groups.
The Fund was involved in reaching joint decisions on adopting group resolution plans for five banking groups.
The Fund prepared a package of actions to mitigate the adverse effects of the Covid-19 pandemic on the banking sector,
assuming that:
in the 2020 planning cycle, the MREL amounts assigned to banks will be updated, taking into account the removal
of the systemic risk buffer;
the mid-term MREL targets set for domestic institutions identified as resolution entities at the end of 2020 will not
be treated as mandatory;
in the 2020 planning cycle, the extended MREL target date of 1 January 2024 will be applied and 1 January 2022 will be
set as the first binding intermediate target date.
The Fund, based on the proposed implementation of the BRRD2 to the BFG Act, also developed a proposed methodology
for determining the MREL to be applied from 2021. The assumptions of the methodology were presented, inter alia, at the
meeting of the Financial Stability Committee on macroprudential supervision on 21 September 2020.
In 2020, the BFG carried out three resolution processes: two against cooperative banks and one against a commercial
bank. In two cases, the sale of business tool was applied. In one case, the bridge institution tool was used.
Proceedings for issuing a decision on the initiation of resolution of Podkarpacki Bank
Spółdzielczy w Sanoku.
In the course of the proceedings concerning the decision on the initiation of the resolution of Podkarpacki Bank
Spółdzielczy w Sanoku (PBS w Sanoku), the Fund, pursuant to Article 137 of the BFG Act, had ensured the preparation
of the valuation of the Bank’s assets and liabilities conducted by PwC Advisory Spółka z ograniczoną odpowiedzialnością
sp. k. (PwC Advisory). The estimate included an assessment of the financial situation of PBS w Sanoku, indicating that the
prerequisites for initiating resolution were met, and of the instruments of resolution that could be possibly applied.
In connection with the results of the estimate prepared by PwC Advisory on behalf of the BFG, confirming the negative
equity of PBS w Sanoku and confirming the fulfilment of the prerequisites referred to in Article 101(7)(1-3) of the BFG
Act, on 15 January 2020, the Management Board of the BFG issued a decision on the initiation of resolution against PBS
w Sanoku, the appointment of an administrator, the write-down of capital instruments and the application of the bridge
institution instrument, as well as a decision on the suspension of the activities of PBS.
5.3 Resolutions initiated
5.4 Resolution of Podkarpacki Bank Spółdzielczy
w Sanoku
Contents
Annual report of the Bank Guarantee Fund
2020
In 2020, representatives of the Fund participated in the meetings of four resolution colleges for banking groups.
The Fund was involved in reaching joint decisions on adopting group resolution plans for five banking groups.
The Fund prepared a package of actions to mitigate the adverse effects of the Covid-19 pandemic on the banking sector,
assuming that:
in the 2020 planning cycle, the MREL amounts assigned to banks will be updated, taking into account the removal
of the systemic risk buffer;
the mid-term MREL targets set for domestic institutions identified as resolution entities at the end of 2020 will not
be treated as mandatory;
in the 2020 planning cycle, the extended MREL target date of 1 January 2024 will be applied and 1 January 2022 will be
set as the first binding intermediate target date.
The Fund, based on the proposed implementation of the BRRD2 to the BFG Act, also developed a proposed methodology
for determining the MREL to be applied from 2021. The assumptions of the methodology were presented, inter alia, at the
meeting of the Financial Stability Committee on macroprudential supervision on 21 September 2020.
In 2020, the BFG carried out three resolution processes: two against cooperative banks and one against a commercial
bank. In two cases, the sale of business tool was applied. In one case, the bridge institution tool was used.
Proceedings for issuing a decision on the initiation of resolution of Podkarpacki Bank
Spółdzielczy w Sanoku.
In the course of the proceedings concerning the decision on the initiation of the resolution of Podkarpacki Bank
Spółdzielczy w Sanoku (PBS w Sanoku), the Fund, pursuant to Article 137 of the BFG Act, had ensured the preparation
of the valuation of the Bank’s assets and liabilities conducted by PwC Advisory Spółka z ograniczoną odpowiedzialnością
sp. k. (PwC Advisory). The estimate included an assessment of the financial situation of PBS w Sanoku, indicating that the
prerequisites for initiating resolution were met, and of the instruments of resolution that could be possibly applied.
In connection with the results of the estimate prepared by PwC Advisory on behalf of the BFG, confirming the negative
equity of PBS w Sanoku and confirming the fulfilment of the prerequisites referred to in Article 101(7)(1-3) of the BFG
Act, on 15 January 2020, the Management Board of the BFG issued a decision on the initiation of resolution against PBS
w Sanoku, the appointment of an administrator, the write-down of capital instruments and the application of the bridge
institution instrument, as well as a decision on the suspension of the activities of PBS.
5.3 Resolutions initiated
5.4 Resolution of Podkarpacki Bank Spółdzielczy
w Sanoku
Contents
