Pollner, John D.2017-06-012017-06-012012-07https://hdl.handle.net/10986/26838The bank insolvency framework in Poland should be modernized to ensure financial stability, maintain the continuity of critical functions in the banking system, and protect depositors and creditors, while assigning losses according to a pre-established creditor hierarchy. Several country experiences in Europe and elsewhere have demonstrated the effectiveness of new bank resolution measures by the European commission. A key aspect of the resolution process is for the authorities to swiftly assess and revalue the balance sheet of the intervened bank. Other particularities of modern resolution procedures relate to maintaining the integrity of secured financial contracts to prevent disruptions in financial market transactions including in payments and settlements systems. The treatment of systemically important institutions should rely on extraordinary resolution tools which are necessary if a bank is too large to be purchased or for its liabilities to be readily assumed. The purpose of this paper is thus to describe and recommend new features that can be added to strengthen the Polish legislation for handling commercial bank insolvencies. The paper focuses on the legal issues related to insolvency of banks (including commercial banks and cooperative banks). The banking sector's share in the total assets of the credit sector amounts to 89 percent while cooperative banks control 6 percent. The only wholly-owned state bank is the development bank Bank Gospodarstwa Krajowego (BGK) which is subject to supervision by the Polish Financial Supervisory Authority (KNF).en-USCC BY 3.0 IGOACCESS TO CREDITACCOUNTABILITYACCOUNTINGADEQUATE LEGAL PROTECTIONADMINISTRATIVE ACTIONSADMINISTRATIVE COSTSADMINISTRATIVE POWERSADMINISTRATIVE PROCEDURESARRANGEMENT WITH CREDITORSASSET MANAGEMENTASSET MANAGEMENT COMPANIESASSET RATIOASSET SALESASSET VALUEASSET VALUESASSUMPTION OF LIABILITIESASSUMPTION TRANSACTIONSAUDITINGAUDITSBALANCE SHEETBALANCE SHEET INSOLVENTBALANCE-SHEET INSOLVENTBANK CREDITORSBANK FAILUREBANK INSOLVENCIESBANK INSOLVENCYBANK INSOLVENCY FRAMEWORKBANK INSOLVENCY REGIMEBANK INSOLVENCY REGIMESBANK LIABILITIESBANK LIQUIDATIONBANK RESTRUCTURINGBANK RUNBANKING AUTHORITYBANKING LAWBANKING LAWSBANKING SECTORBANKING SUPERVISIONBANKING SYSTEMBANKRUPTCIESBANKRUPTCYBANKRUPTCY CASESBANKRUPTCY LAWBANKRUPTCY PETITIONBANKRUPTCY PROCEDURESBANKRUPTCY PROCEEDINGSBANKSBENEFIT OF CREDITORSBOOK VALUECAPITAL ADEQUACYCAPITAL INJECTIONSCENTRAL BANKSCIVIL PROCEDURECLAIMCLAIMANTSCOMMERCIAL BANKSCOMMERCIAL INSOLVENCYCOMMERCIAL INSOLVENCY LAWCOMMERCIAL INSOLVENCY LAWSCOMPETITOR BANKSCONSOLIDATIONCONTRACTUAL ARRANGEMENTSCONTRACTUAL RELATIONSHIPSCOOPERATIVE BANKINGCOOPERATIVE BANKING SECTORCOOPERATIVE BANKSCORPORATE INSOLVENCYCORPORATE INSOLVENCY FRAMEWORKCORPORATE INSOLVENCY LAWCORPORATE INSOLVENCY PROCEEDINGCOURT PROCEEDINGSCREDIBILITYCREDIT INSTITUTIONSCREDITORCREDITOR CLAIMSCREDITOR CLASSESCREDITORSDEBTDEBT OBLIGATIONDEBTORDECLARATION OF BANKRUPTCYDEPOSITDEPOSIT GUARANTEEDEPOSIT INSURANCEDEPOSIT INSURANCE AGENCIESDEPOSIT INSURANCE AGENCYDEPOSIT INSURANCE FUNDDEPOSIT INSURANCE FUNDSDEPOSIT INSURANCE SCHEMESDEPOSITORDEPOSITORSDEPOSITSDERIVATIVESDISTRESSED BANKSESTATEFEATURES OF INSOLVENCY LAWFEDERAL DEPOSIT INSURANCEFEDERAL DEPOSIT INSURANCE CORPORATIONFINANCIAL CONTRACTSFINANCIAL INDICATORSFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL REGULATIONFINANCIAL REPORTINGFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL STRUCTUREFINANCIAL SYSTEMFOREIGN BANKSFORMAL BANKRUPTCYGOING CONCERNGOING CONCERN VALUEGOOD FAITHGUARANTEE FUNDILLIQUIDITYIMMINENT INSOLVENCYIMPAIRED ASSETSINSOLVENCY FRAMEWORKSINSOLVENCY PROCEDUREINSTITUTIONAL FRAMEWORKINSUFFICIENT FUNDSINSURED DEPOSITSINTEREST RATESJUDGESJUDICIAL AUTHORITIESJUDICIAL POWERSJUDICIARYJURISDICTIONSLAST RESORTLAWSLEGAL FRAMEWORKLEGAL FRAMEWORKSLEGAL PROTECTIONLEGAL REFORMLEGISLATIONLIABILITYLIQUIDATIONLIQUIDATION OF ASSETSLIQUIDATION PROCEDURESLIQUIDATION STAGELIQUIDATIONSLIQUIDATORLOANLOAN ASSETSLOAN LOSS PROVISIONSMANDATEMARKET DISCIPLINEMARKET PARTICIPANTSMARKET VALUEMORAL HAZARDNEW LEGAL FRAMEWORKNONPERFORMING LOANSNUMBER OF BANKNUMBER OF CREDITORSOFF BALANCE SHEETOPEN BANKOPERATIONAL RISKSORDINARY BANKRUPTCYPARTIAL TRANSFERSPAYMENT OF CLAIMSPERSONAL LIABILITYPRESENT VALUEPRIORITY OF CREDITORPRIVILEGED CREDITORPROCEDURES FOR INSOLVENCYPROFITABILITYPROPERTY RIGHTSPUBLIC FUNDSPUBLIC SERVICESPURCHASE AND ASSUMPTION TRANSACTIONSRECAPITALIZATIONRECEIVERRECEIVERSHIPREGULATORY FORBEARANCEREGULATORY FRAMEWORKREGULATORY REPORTSREHABILITATION PLANSREORGANIZATIONREORGANIZATION PLANSREORGANIZATION PROCEEDINGSSALARIESSALARYSALES OF ASSETSSETTLEMENTSETTLEMENT SYSTEMSSETTLEMENTSSHAREHOLDER RIGHTSSOLVENT BANKSSTATE BANKSUBORDINATED DEBTSUBSIDIARIESSUBSIDIARYSUPERVISORY ACTIONSUPERVISORY AUTHORITIESSUPERVISORY POWERSSYSTEMIC RISKTECHNICAL ASSISTANCETIER 1 CAPITALTRADITIONAL BANKRUPTCYTRUSTEETYPES OF DEBTVALUE OF ASSETSVOLUNTARY LIQUIDATIONSWINDING UPWRITE OFFSReportWorld Bank10.1596/26838