Aside from guaranteeing deposits, the Bank Guarantee Fund conducts assistance activity consisting in providing financial assistance to banks facing the threat of insolvency or for the purchase of stock or shares of banks.
Aside from guaranteeing deposits, the Bank Guarantee Fund conducts assistance activity consisting in providing financial assistance to banks facing the threat of insolvency or for the purchase of stock or shares of banks.
Assistance is financed from BFG’s own funds, contained in the assistance fund. Inflows to this fund come from annual fees incurred by banks covered by the guarantee system.
BFG also provides assistance to cooperative banks from funds contained in the so-called Cooperative Bank Restructuring Fund (CBRF), provided by Bank Gospodarki Żywnościowej S.A. and banks affiliating cooperative banks on the basis of the Act on the Operation of Cooperative Banks, their Affiliation, and Affiliating Banks of 7 December 2000. Assistance from this fund is granted only to those cooperative banks not facing the threat of insolvency.
The Bank Guarantee Fund may extend guarantees to domestic banks implementing a reorganisation programme to increase their own funds level. The execution of the guarantee entails purchasing or assuming stock, bonds or bank-issued securities in case of insufficient demand on the part of current stockholders or shareholders or intended third-party recipients of the issue.
The Bank Guarantee Fund finances such operations from assets in the stabilisation fund, established from inflows from prudential levies paid by banks.
