On Friday 31 August, the European Commission approved the prolongation of Danish, Italian and Polish measures aiming to support the banking sector.
The Danish measure is a resolution scheme for small banks with total assets below €3 billion. It aims to make the work of the national resolution authorities easier when a bank ends up in financial difficulties. It was initially authorised by the Commission in September 2010 (see EUROPE 10226) and was most recently prolonged in August 2017. This new decision will allow the Danish authorities to continue to apply the measure until 31 August 2019.
The Italian regime in question is a state guarantee for non-performing loans. It allows certain Italian banks to apply for and obtain public guarantees on the lower-risk senior notes issued by securitisation vehicles. The measure was initially approved in February 2016 (see EUROPE 11487) before being prolonged, most recently in September 2017 (see EUROPE 11856). This new Commission green light will apply until 7 March 2019.
Lastly, the Commission has also approved an eighth prolongation of the Hungarian liquidation scheme for banks. This measure, initially approved in February 2014 (see EUROPE 11022), was last prolonged in August 2017 (see EUROPE 11842). It will continue to apply to banks that are member-owned entities providing services exclusively for these members. The measure will continue to apply until 15 July 2019. (Original version in French by Lucas Tripoteau)