Transfer of assets and liabilities of an insolvent bank to a receiving bank

This resolution option provides for the sale to the acquiring bank of all or part of the insolvent bank's property (assets) specified in the bid and the transfer to the acquiring bank liabilities (debts) of the insolvent bank for the same amount. The interested bank is usually given the opportunity to choose the assets of the insolvent bank that it wants to receive. However, it cannot choose its depositors (creditors) - the register of liabilities to be transferred is compiled by the DGF. At the same time, the DGF must transfer at least all guaranteed deposits to the acquiring bank. Other liabilities of the insolvent bank, if possible, are transferred to the receiving bank in the same order of priority of creditors as in the case of a ordinary bank liquidation. The remaining liabilities of the insolvent bank are repaid by the DGF through the sale of the remaining assets of the insolvent bank in the liquidation procedure. This method of resolution has advantages when there is no need to preserve the insolvent bank's licenses and the other bank intends to scale up its banking business and attract new customers.