The European Commission approved on 1 October, under EU State aid rules, several support measures in the context of the resolution of the Polish bank Getin Noble Bank S.A.
The resolution process, coordinated by the Polish national resolution authority, as well as the related support measures, will allow for an orderly sale process or wind-down of the bank while preserving financial stability and a level playing field in the single market.
Getin Noble Bank S.A. has been encountering difficulties since 2016 due to low profitability.
The resolution plan provides that once the bank is resolved, its main assets and liabilities, with the exception of equity and subordinated debt, which will be fully written down to absorb losses, will be transferred to a newly created bridge bank. The purpose of this transfer is to ensure the continuation of normal banking operations.
The bridge bank will serve as a temporary solution to avoid a sudden exit of Getin Noble Bank from the market and to allow sufficient time to organise an orderly sale process of the bridge bank. Poland has committed to an open, transparent and non-discriminatory sale process for the newly established bridge bank with the aim of finding a suitable buyer that would ensure its long-term viability.
The Commission found that the measures are consistent with the objective of preserving financial stability. Existing shareholders and subordinated debt holders contributed to the costs, which reduced the need for intervention by the Polish resolution fund, in line with burden-sharing principles. In addition, in order to limit distortions of competition, Poland has committed, among other things, that the existence of the bridge bank will be limited in time and that prudent management will be implemented. On this basis, the Commission approved the measures under EU State aid rules. (Original version in French by Lionel Changeur)