Since the entry into force of the new provisions on bank insolvency on July 1, 2004, the SFBC has acquired competence over restructuring and bankruptcy procedures concerning the natural and legal persons, which are under its supervision as institutions conducting banking or securities dealing activities. The objective of a restructuring is to allow a financially struggling institution to carry on its activities. Such a procedure is not available when the license of the institution has already been withdrawn or when such a license cannot be delivered at an institution for its previously unauthorised activities. If a restructuring procedure is doomed or if such a procedure has already failed, the SFBC has the competence to declare the bankruptcy of the institution. In this context, the SFBC acts as a bankruptcy judge and a supervisory authority responsible for the creditors’ committee and the bankruptcy liquidator appointed by the SFBC. Moreover, the SFBC acts as bankruptcy administrator in various areas. Bank bankruptcy as well as restructuring procedures are specific and adapted to the needs of the financial sector.
