Resolution of Credit Institutions
Law 4335/2015 (Government Gazette A 87/23.7.2015) (only in Greek) designated the Bank of Greece as the competent national resolution authority for the resolution of credit institutions under its supervision.
Resolution is the application of a resolution tool to a credit institution that the competent supervisory authority has determined to be failing or likely to fail, in order to achieve one or more of the resolution objectives.
The resolution objectives, as defined in Law 4335/2015, are:
• to ensure the continuity of the critical functions of the institution under resolution;
• to avoid significant adverse effects on financial stability;
• to protect public funds by minimising reliance on extraordinary public financial support;
• to protect depositors covered by deposit guarantee schemes and investors covered by investor compensation schemes; and
• to protect the funds and assets of clients and other creditors.
For performing its tasks as national resolution authority, the Bank of Greece has established a dedicated function, the Resolution Department, and a dedicated decision-making body, the Resolution Measures Committee (RMC).
As part of its tasks, the Resolution Department prepares and submits to the Resolution Measures Committee draft resolution plans and oversees the implementation of the resolution measures decided by the Resolution Measures Committee.
As from 1 January 2016, the Bank of Greece, in its capacity as national resolution authority, is a member of the Single Resolution Mechanism.