mcel_master_working_paper_20186_belien_zachari_valerie_pdf.pdf
(1.92 MB, PDF)
… Maastricht Centre for European Law Master Working Paper 2018/6 Britt Beliën, Elli Zachari, Valérie Govers State Aid and Public Procurement: The Evolution of State Aid to Banks: A Post Crisis Review 2 All rights reserved No part of this paper may be reproduced in any … 5 2.2. Rationale of granting state aid to banks .............................................................. 6 2.3. Pre-crisis framework: the Rescue and Restructuring Guidelines ........................ 8 2.4. Crisis framework: the four Crisis Communications ............................................. 9 2.5. The current framework ...................................................................................... 12 2.5.1. Tightening the rules: the 2013 Banking Communication … 40. 6 Galand et al. 2016, p. 1144. 7 Wojcik 2016, p. 93. 7 First, banks are essential for the economy. Allowing them to fail, and therefore be submitted to traditional bankruptcy proceedings, may mean that their critical functions, such as payment services, lending activities and maintaining the availability of deposits to depositors, are discontinued.8 This would, in turn, disrupt the normal functioning of the economy as a whole. Secondly, allowing individual banks to fail is deemed to generate …