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Annual report of the Bank Guarantee Fund
2020
5.7 Other actions in the area of resolution
Fulfilment of the trustee function in respect of Idea Bank S.A.
The Fund in 2020 continued to carry out the trustee function in Idea Bank S.A. based on the decision of the KNF
of 15 May 2019 on the appointment of a trustee in Idea Bank pursuant to Article 144(1) of the Banking Law. The purpose
of the appointment of the trustee was to improve the Bank’s situation by, inter alia, undertaking activities related to the
participation in and supervision of the process of preparation and implementation of the updated recovery plan, which
should aim to restore the Bank’s viability.
As part of fulfilling the trustee’s obligations, the Fund analysed the decisions made by the bodies of Idea Bank. As a result
of those works and on the basis of the results of analyses carried out by audit companies commissioned by the BFG,
showing that some planned transactions would have a negative impact on the financial results of Idea Bank, the Fund
lodged objections to selected resolutions of the Management Board and Supervisory Board of Idea Bank S.A.
The Fund submitted monthly reports to the KNF on its activities as the supervisor of Idea Bank.
On 31 December 2020, the resolution procedure was initiated against Idea Bank. As a result, on the same date, the
decision appointing the Fund as the trustee of Idea Bank expired. At the same time, the powers of attorney granted to the
supervisor’s attorneys also expired.
Bridge institutions
In 2020, the Fund remained the sole shareholder of three bridge institutions
operating under the name:
Pierwszy Bank BFG S.A.
Drugi Bank BFG S.A.
Bank Nowy BFG S.A.
Among the above entities, only Bank Nowy BFG S.A. started its operations with the Fund’s decision to apply the resolution
tool in the bridge institution tool with respect to PBS w Sanoku.
In Q4 of 2020, the Fund began analytical work related to the liquidation of bridge institutions that had not yet started
operations.
Notifications
The Fund held discussions with the European Commission on the 4th prolongation and modification (5th prolongation) of
the State aid SA.46575 (2016/N) - Poland - resolution scheme for cooperative banks and small commercial banks, notified
by the EC on 20 December 2016 with subsequent extensions. The 4th prolongation of the scheme was implemented on
the basis of the EC decision of 29 April 2020.
On 23 December 2020, the European Commission sent a confirmation of the change in the conditions of the aid scheme
for cooperative banks and small commercial banks.
Contents
Annual report of the Bank Guarantee Fund
2020
5.7 Other actions in the area of resolution
Fulfilment of the trustee function in respect of Idea Bank S.A.
The Fund in 2020 continued to carry out the trustee function in Idea Bank S.A. based on the decision of the KNF
of 15 May 2019 on the appointment of a trustee in Idea Bank pursuant to Article 144(1) of the Banking Law. The purpose
of the appointment of the trustee was to improve the Bank’s situation by, inter alia, undertaking activities related to the
participation in and supervision of the process of preparation and implementation of the updated recovery plan, which
should aim to restore the Bank’s viability.
As part of fulfilling the trustee’s obligations, the Fund analysed the decisions made by the bodies of Idea Bank. As a result
of those works and on the basis of the results of analyses carried out by audit companies commissioned by the BFG,
showing that some planned transactions would have a negative impact on the financial results of Idea Bank, the Fund
lodged objections to selected resolutions of the Management Board and Supervisory Board of Idea Bank S.A.
The Fund submitted monthly reports to the KNF on its activities as the supervisor of Idea Bank.
On 31 December 2020, the resolution procedure was initiated against Idea Bank. As a result, on the same date, the
decision appointing the Fund as the trustee of Idea Bank expired. At the same time, the powers of attorney granted to the
supervisor’s attorneys also expired.
Bridge institutions
In 2020, the Fund remained the sole shareholder of three bridge institutions
operating under the name:
Pierwszy Bank BFG S.A.
Drugi Bank BFG S.A.
Bank Nowy BFG S.A.
Among the above entities, only Bank Nowy BFG S.A. started its operations with the Fund’s decision to apply the resolution
tool in the bridge institution tool with respect to PBS w Sanoku.
In Q4 of 2020, the Fund began analytical work related to the liquidation of bridge institutions that had not yet started
operations.
Notifications
The Fund held discussions with the European Commission on the 4th prolongation and modification (5th prolongation) of
the State aid SA.46575 (2016/N) - Poland - resolution scheme for cooperative banks and small commercial banks, notified
by the EC on 20 December 2016 with subsequent extensions. The 4th prolongation of the scheme was implemented on
the basis of the EC decision of 29 April 2020.
On 23 December 2020, the European Commission sent a confirmation of the change in the conditions of the aid scheme
for cooperative banks and small commercial banks.
Contents
