Regulatory Alerts2022-12-23
Added · Updated
Bankruptcy of Credit Institutions and Insurers
DNB may apply for the bankruptcy of a credit institution or insurer if the firm has negative own funds and emergency regulations cannot resolve the situation, without needing to be a creditor or proving cessation of payments. Upon declaration of bankruptcy, DNB cancels the firm’s authorization, notifies the Minister of Finance and EEA supervisors, and activates the Deposit Guarantee and Investor Compensation Schemes for credit institutions. Bankruptcy applications may also be filed by creditors or the firms themselves, with DNB’s opinion sought before court rulings, and priority given to emergency regulation applications if filed concurrently.
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