It should also be laid down that the final outcome of winding up procedures is the termination of banking activities leading to the exit of the failing institution or entity from the market. Depending on the national law applied, that outcome can be achieved in different ways. Those can include the sale of the institution or entity or parts of it, the sale of specific assets or liabilities or a gradual wind-down, including of payments and deposit-taking, with a view to selling its assets gradually to repay the affected creditors. A termination of banking activities might also require, inter alia, a limitation on the issuance of new liabilities to cover only the refinancing needs arising from existing assets so that the maturity of the liabilities is not extended. To enhance the predictability of the procedures, that outcome should be reached within a reasonable timeframe.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
