Edited by Chiara Zilioli and Karl-Philipp Wojcik
Chapter 36: PUBLIC INTEREST FOR RESOLUTION ACTION IN THE LIGHT OF THE ABLV CASES
Resolution is not, by choice of the Union legislator, an always-available scenario, but rather a privilege granted only if in public interest. The outcome of public interest test is therefore the key to the further destiny of the failing bank, as also demonstrated by the ABLV case. Once the SRB adopted decisions by which it established that resolution action with respect to ABLV Latvia and its subsidiary ABLV Luxembourg is not necessary in the public interest, shareholders of ABLV Latvia started a voluntary liquidation process. Even if the BRRD does not harmonise national insolvency laws, liquidation under normal insolvency proceedings, however, seems to be the only other option in addition to the resolution legitimately available to the failing or likely to fail banks. Both resolution and winding-up under normal insolvency proceedings must meet resolution objectives set out in Article 31(2) BRRD, however, those objectives could be possibly ignored by voluntary liquidation.
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