This instrument enables the Bank Guarantee Fund to transfer in whole or in part the business of an entity being under the bankruptcy threat to another financial institution of good financial standing or to sell its shares to a new investor, which will ensure stability and development of the said entity.

The transfer of the business takes place through „the sale” of property rights of an entity under resolution for which the acquirer pays by acquiring liabilities of this entity. In such a case, depositors of the entity under resolution become clients of the acquirer.

If the value of the acquired property rights is lower than the value of the liabilities derived from the guaranteed funds, the BGF may cover this difference from a respective guarantee fund in order to ensure that all the deposits covered by the guarantee protection are transferred to the viable entity. All funds of depositors transferred to the acquirer are covered by the deposit guarantee scheme as before.

Diagram: Sale of business tool