Regulatory Alerts2016-02-22
Added · Updated
Regulation on the Transition Bank
The Central Bank of São Tomé and Príncipe issued this regulation to establish the legal framework for the creation and operation of transition banks during the resolution of failing financial institutions. The document mandates that transition banks, established as temporary credit institutions, must acquire and manage assets and liabilities from originator banks to ensure continuity of vital functions and facilitate orderly disposal. It details strict governance structures, capital requirements, asset selection criteria excluding related-party liabilities, and the role of independent valuations to maximize asset value during the resolution process.
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