The European Banking Authority (EBA) received a notification regarding the resolution action taken by the Single Resolution Board (the SRB) in respect of Banco Popular Español as the conditions for resolution were met. The SRB adopted a resolution scheme providing for the application of the sale of business tool. Following a marketing process, the SRB decided to transfer Banco Popular to Banco Santander S.A. and to exercise the power of write-down and conversion of capital instruments prior to the transfer in order to address the shortfall in the value of the Institution.
In accordance with the SRM Regulation (EU) No 806/2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms, the Spanish resolution authority, the Fondo de Reestructuración Ordenada Bancaria (the Fund for Orderly Bank Restructuring), will take the necessary actions to implement the resolution scheme adopted by the SRB and the effective execution of the transfer.
As regards the effects of the resolution action, customers will benefit from the adoption of the resolution scheme and the transfer of Banco Popular to a large and sound financial institution. The resolution action allows for the continuation of the provision of critical functions and services to individuals and SMEs by Banco Popular, and, in particular, the deposit-taking and lending services.