Rules for restructuring and winding up banks with branches abroad

Automatic summary, not yet reviewed

1. The law brings Directive 2001/24/EC into Spanish law and governs restructuring measures and liquidation proceedings affecting credit institutions and their branches.
2. It applies to credit institutions authorized in Spain with branches or services in other member states, to those authorized in another member state with a branch or services in Spain, and to branches in Spain of institutions not authorized in the European Union.
3. In Spain, the restructuring measure is the opening of insolvency proceedings and the liquidation proceeding is the opening of their liquidation phase, under the Insolvency Law.
4. Only Spanish judicial authorities can decide restructuring measures or liquidations for institutions authorized in Spain, including their branches in other member states, and they must promptly notify through the Bank of Spain.
5. Spanish law applies as a general rule, but there are exceptions: employment contracts follow their own law, real estate follows the law of the country where it is located, and public registers, accounts or deposit systems follow the law of the state where they are located.
6. Decisions must be published in the Official Journal of the European Union and in at least two newspapers in each host state, and creditors in other member states have the right to be informed and to file their claims with the same treatment as creditors in Spain.

Who it affects

• Credit institutions authorized in Spain with branches or services in other European Union member states.: Their crises are decided by Spanish judicial authorities under Spanish law, with the stated exceptions.
• Credit institutions authorized in another member state with a branch or services in Spain.: Restructuring measures and liquidations from their home state take effect in Spain without further formalities.
• Creditors living or domiciled in another member state.: They must be informed in writing and can file claims in their own language, with the same treatment as Spanish creditors.
• Bank of Spain (Banco de España).: Acts as the information channel between authorities and publishes foreign decisions in the official state gazette.

Words worth knowing

Entidad de crédito

A company authorized to take money from the public and grant credit, such as a bank.

Medida de saneamiento

A decision by an authority to restore a institution's financial situation, such as suspending payments or reducing claims.

Procedimiento de liquidación

A collective process supervised by authorities to sell the institution's assets and pay its debts.

Concurso de acreedores

A court process for a company with debts to arrange payment or reach an agreement with its creditors.

Estado miembro de origen

The European Union country where the credit institution received its authorization.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries