Inhalt
Instruments
Instruments of the Restructuring Fund
BaFin can issue a transfer order with which financial assets which are particularly deserving of
protection from a financial market standpoint can be transferred to an absorbing legal entity. This
legal entity can be an existing institution which volunteers to accept the assets. If no such
institution is available, the Restructuring Fund may establish a “bridge bank” which can then take
over the financial assets listed in the transfer order. If necessary, the Restructuring Fund can
provide the absorbing legal entity with capital or give it guarantees. The Restructuring Fund
should take such measures only if there is a substantial interest on the part of the Federal
Government and the purpose sought by the Federal Government cannot be achieved better and more
economically by other means.
Establishing a “bridge bank”
Wherever necessary, the Restructuring Fund is required to make available a bridge bank as an
absorbing legal entity. For this to be accomplished without undue delay, the Restructuring Fund Act
gives the Restructuring Fund the opportunity to form, at any time, even without a specific need, a
corporation that, in the case of a transfer order, can serve as a bridge institution (also known as
a “shelf corporation”). The bridge bank is established by the Restructuring Fund, which is then
responsible for ensuring that the bridge bank meets the conditions of eligibility for entry into
the Commercial Register. Upon the imposition of a transfer order, the bridge institution can then
be adapted to the requirements of the specific situation (by changing the by-laws, board
membership, capitalisation etc).
Recapitalisation
The Restructuring Fund can purchase a stake in the absorbing legal entity. Technically, this
can be achieved by purchasing newly issued bank shares or through silent participation.
Guarantees
The Restructuring Fund can give guarantees to the absorbing legal entity – either an already
existing entity or a bridge bank created expressly for the purposes of asset transfer. The
Restructuring Fund Act provides for certain clearly defined case scenarios in which it is possible
to give guarantees. Moreover, legislation gives the Restructuring Fund the authority to give
guarantees for debt securities which the absorbing legal entity issues in order to raise finance.
What is important is that the guarantee may not be given free of charge.