Compulsory banks' restructuring as an attempt to ensure continuity of bank functions that are key to the market : Poland's example
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Compulsory banks’ restructuring is a relatively new solution introduced onto the ground of national legislation in connection with EU requirements. The mechanism of resolution is also an attempt of a response to the financial crisis that took place in 2007-2008. The basic aim of compulsory restructuring is to ensure continuity of provision of key bank functions. Due to the launch in Poland on 15 January 2020 of the first compulsory restructuring of the Podkarpacki Bank Spółdzielczy (PBS) with its office in Sanok this issue gained a practical dimension. The purpose of the research is to indicate whether relevant applicable legislation and steps already taken in practice allow the implementation of the basic objective of the resolution process. The research hypothesis was based on an assumption that ensuring continuity of critical functions of a bank that found itself in a bad financial standing is an important element used to stabilize the situation on the banking market. By ensuring critical functions, the requirement launching the payment of guaranteed funds to the depositors will not be met and it will be possible to use and enjoy solutions which will affect the entire financial market to a smaller degree.