The Bank Guarantee Fund may grant financial assistance to a bank by extending a guarantee to increase the bank’s own funds level, and in the event of executing the guarantee – purchasing or assuming stock, bonds or bank-issued securities in the event of insufficient demand on the part of stockholders, shareholders or intended third-party recipients of an issue.
The Bank Guarantee Fund may grant financial assistance to a bank by extending a guarantee to increase the bank’s own funds level, and in the event of executing the guarantee – purchasing or assuming stock, bonds or bank-issued securities in the event of insufficient demand on the part of stockholders, shareholders or intended third-party recipients of an issue. Assistance from the stabilisation fund, established by BFG from inflows from prudential levies paid by banks, is extended to banks implementing reorganisation programmes approved by the Polish Financial Supervision Authority.
Extension of the guarantee is predicated upon a written request submitted by the minister responsible for financial institutions, after the bank has met the relevant statutory conditions and conditions stipulated by the BFG Council. Evaluation of the request includes assessment of the economic and financial standing of the bank, an analysis of the reorganisation programme and the conditions of the issue.
The detailed terms and conditions of extending a guarantee to increase a bank’s own funds level, in addition to a list of documents and information that should be included in an application for the guarantee, have been stipulated by the BFG Council in Resolution no. 34/2013 of 25 September 2013.