The Single Resolution Board adopts resolution decision for Banco Popular
Brussels – 7 June 2017
Today, the Single Resolution Board (SRB) has transferred all shares and capital instruments of Banco Popular Español S.A. (Banco Popular) to Banco Santander S.A (Santander). This means that Banco Popular will operate under normal business conditions as a solvent and liquid member of the Santander Group with immediate effect.
Due to its recent stressed liquidity situation, the European Central Bank (ECB) had decided that Banco Popular was “failing or likely to fail” on 6 June 2017 and notified the SRB accordingly. The SRB and the Spanish National Resolution Authority – FROB – have decided that the sale was in the public interest as it protects all depositors of Banco Popular and ensures financial stability. The resolution scheme enters into force today, following the endorsement by the European Commission.
“The decision taken today safeguards the depositors and critical functions of Banco Popular. This shows that the tools given to resolution authorities after the crisis are effective to protect taxpayers’ money from bailing out banks”. - Elke König, Chair of the SRB.
The purchase price paid by Santander for the shares and capital instruments of Banco Popular is 1 Euro. The resolution decision will be implemented by FROB.
The SRB has decided that the sale of business tool for transferring shares to a purchaser meets the resolution objectives and ensures the financial stability in Spain and Portugal, where Banco Popular owns a subsidiary. As a result, the shares, including the entire business of Banco Popular and its subsidiaries, have been transferred to Santander Group as of 7 June 2017. The SRB, by its decision, effectively protects the depositors of Banco Popular and its critical functions to avoid adverse effects on financial stability and the real economy, without using any public funds.
- Read the summary of the effects of the resolution action
- Resolution of the FROB Governing Committee adopting the measures required to implement the Decision of the Single Resolution Board in its Extended Executive Session of 7 June 2017 concerning the adoption of the resolution scheme in respectof Banco Popular Español
- European Commission Press Release
- European Central Bank Press Release
- DIRECTIVE 2014/59/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council
- REGULATION (EU) No 806/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010
- Read more information about resolution in the SRB’s Introduction to Resolution Planning.
- Q&A BRRD / SRMR on SRB Website
About the Single Resolution Board
The Single Resolution Board (SRB) is the resolution authority within the Banking Union. Together with the National Resolution Authorities (NRAs) it forms the Single Resolution Mechanism. The SRB works closely with, in particular, the NRAs of participating Member States, the European Commission (EC), the European Parliament (EP), the European Central Bank (ECB) and National Competent Authorities (NCAs). The NRAs play a key role within the Banking Union. The mission of the SRB is to ensure an orderly resolution of failing banks with minimum impact on the real economy and the public finances of the participating Member States of the Banking Union.
SRB Contact details:
Camille De Rede – Communication Officer
+32 2 490 3530
+32 477 028 530
+32 2 490 3702
+32 477 028 702
FROB - Spanish National Resolution Authority Contact details:
+34 699 643 929
+34 91 432 78 68