Brussels, 24 October 2022
The European Commission has approved, under EU State aid rules, the prolongation of a Polish resolution scheme for small commercial and cooperative banks. The scheme is aimed at facilitating the work of the Polish resolution authority, should a concrete resolution case and need arise for it. The measure, originally approved by the Commission in December 2016 (SA.46575), benefited small commercial and cooperative banks with total assets below €3 billion, if placed in resolution by the competent national authorities. The scheme was prolonged six times (SA.48302, SA.51403, SA.54463, SA.56141, SA.58389, SA.64522).
In addition, in December 2020 (SA.60520), the scheme was amended due to the exceptional circumstances of the coronavirus pandemic to cover cooperative banks and small commercial banks with total assets below €5 billion. The amended scheme is set to expire on 29 October 2022. Poland has now notified to the Commission its intention to prolong the amended scheme for an additional twelve months, until 29 October 2023. The Commission assessed the scheme under the EU State aid rules, and in particular under Article 107(3)(b) of the Treaty on the Functioning of the European Union, the 2013 Banking Communication and the Bank Recovery and Resolution Directive. The Commission found the scheme continues to be necessary and appropriate to ensure an orderly resolution process, particularly in light of the current economic crisis. Furthermore, the Commission concluded that the measure continues to be proportionate, as it is limited to the minimum necessary, and to have a limited impact on competition and trade between Member States. On this basis, the Commission found that the prolongation of the scheme is in line with EU State aid rules. The non-confidential version of the decision will be available under case number SA.103943 in the State aid case register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission