Resolution Fund

When it comes to sources of resolution financing, the Resolution fund plays a significant role in the bank resolution framework. The funds of the Resolution Fund should equal at least 1% of the amount of the total covered deposits in the banking system, and this target level should be reached within 10 years from the day of enforcement of the Bank Resolution Law (13.10.2035).  The Fund’s assets will be generated from the contributions paid by the banks, as well as through loans and other forms of funding. The funds can be used in particular cases prescribed in the Law, such as paying capital to bridge institution or the asset management vehicle, purchasing property from the bank under resolution, issuing guarantees for the assets and liabilities of the bank, approving loans to the bank under resolution, etc.