Bezpieczny Bank nr 2 (71) 2018, s. 126-136

DOI: 10.26354/bb.7.2.71.2018

Andrzej Dżuryk

Andrzej Dżuryk, PhD, Adjunct at the Department of Banking, Faculty of Management, University of Gdansk and Director at Société Générale Corporate and Investment Banking Branch in Poland. The article solely presents author’s opinions and shall not be interpreted as a position of respective institutions.

Funding of Banks in Resolution

Abstract:
The article presents the outcome of the research executed by the author, which formed the position of the European Financial Congress (EFC) in relation to the Financial Stability Board’s consultative document on Funding Strategy Elements of an Implementable Resolution Plan. The position, was based on the opinions of stakeholders of Polish financial market, represented by banks, regulatory bodies, law firms and the academia.
The consultative document set out proposed guidance on the development of a plan for funding banks in resolution. The research revealed a wide array of challenges in the development of firm capabilities to facilitate the execution of the funding strategy in resolution. Additional issues were raised regarding relevant aspects for estimating liquidity needs in resolution process. There were indicated numerous obstacles to the mobilisation of assets that could be used as collateral for particularly private sector backstop sources of funding. All those blocking points could be removed by public sector support funding, subject to certain conditions. Moreover, there are a number of actions that could be taken by G-SIBs and authorities to support the development and implementation of resolution funding and there are also some other aspects of funding strategy which shall be also considered.

Key words:
financial stability, financial stability board, resolution, BRRD, funding in resolution, G-SIB.

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