| Abstract [eng] |
Regulation of bank insolvency in European Union law Aušra Grubytė With the recent rapid expansion and development of financial technologies, banks remain one of the most significant and key institutions in both Lithuania and the European Union. Although bank insolvency is a negative and undesirable phenomenon, it is not inevitable. Conversion measures provide an opportunity to reduce losses for Member States' economies and taxpayers in the event of a bank failure. The first part of this master thesis analyzes the concept of bank and bank insolvency, identifies the types and purposes of bank insolvency proceedings. The second part analyzes and evaluates the resolution measures. After analyzing the conditions for the application of these measures, the resolution measures are qualified in Lithuanian civil law. The provisions of the Bank Recovery and Resolution Directive are also systematically examined in this section. The third part of the master thesis is aimed at analyzing and assessing the impact of the application of resolution measures on the shareholders and creditors of the bank under resolution and whether their rights are sufficiently secured during the resolution process. It should be noted that this section also analyzes the case-law of the European Court of Human Rights that is relevant. After the analysis, it is concluded that the overriding public interest prevails in bank insolvency proceedings, which has created the need to regulate bank insolvency by a special law. However, even the application of resolution measures does not prevent the direct liquidation of the bank. The application of resolution measures delays the liquidation of the bank and reduces the resulting negative consequences for the stability of the financial system. In Lithuanian civil law, it is difficult to find a legal relationship that could be analogous to reorganization measures. Finally, it must be assessed that the application of resolution measures affects the bank's shareholders and creditors, as the resolution authority may, based on the powers conferred on it and in the public interest, restrict the property rights of shareholders and creditors. |
