The bridge institution tool is used when it is necessary to ensure the continuity of critical functions or the protection of financial stability, whereas an entity willing to acquire the business of an entity under resolution cannot be found.
In the case of the bridge institution tool a special purpose vehicle established by the Bank Guarantee Fund, in the form of a bank or a brokerage house is the acquirer of property rights of the entity under resolution and acquires them in exchange of assumption of liabilities of the said entity. The whole process of „the sale” of property rights of the entity under resolution takes place under the terms analogous to those applied in the case of the sale of business tool.
Once the situation is stabilized, the Fund should seek to sell shares of the bridge institution (to a strategic investor or via the Stock Exchange) or to sell its business, as in the case of the sale of business tool.
