This book explores the diversity of restructuring instruments applied to financial institutions in EU countries during the Global Financial Crisis. It investigates the cost of that support before evaluating its effects, as well as providing an extensive analysis of the measures undertaken. The first chapter presents a historical outline, discusses causes of crises, and offers an overview of the restructuring instruments and of how they were used for crisis management before 2007. The following chapters explore the financial environment in the EU before the crisis outbreak, the rescue actions and financial landscape after the events of the crisis. This book offers a critical and thorough analysis of the financial support provided to banks, providing case studies of over 95 banks from 17 EU member states. The authors provide an in-depth study of the pre and post-crisis landscape, and demonstrate that the crisis has by no means been overcome.

This book explores the diversity of restructuring instruments applied to financial institutions in EU countries during the Global Financial Crisis. It investigates the cost of that support before evaluating its effects, as well as providing an extensive analysis of the measures undertaken. The first chapter presents a historical outline, discusses causes of crises, and offers an overview of the restructuring instruments and of how they were used for crisis management before 2007. The following chapters explore the financial environment in the EU before the crisis outbreak, the rescue actions and financial landscape after the events of the crisis. This book offers a critical and thorough analysis of the financial support provided to banks, providing case studies of over 95 banks from 17 EU member states. The authors provide an in-depth study of the pre and post-crisis landscape, and demonstrate that the crisis has by no means been overcome.

List of Figures
List of Tables
Notes on the Contributors
Introduction: Ma?gorzata Iwanicz-Drozdowska
1. Banking Crises and Restructuring Tools: Ma?gorzata Iwanicz-Drozdowska
1.1. Short History and the Scope of the Analysis
1.2. Causes of Banking Crises – Review of the Literature
1.3. Types of Financial Support – Historical Perspective
2. Pre-Crisis Landscape: Pawe? Smaga
2.1. Economic Environment
2.1.1. Macroeconomic Conditions
2.1.2. Fiscal Policy
2.1.3. Monetary Policy
2.2. Pre-Crisis Financial Standing of the EU Banking Sector
2.3. Pre-Crisis Legal and Institutional Arrangements for Rescue Operations in the EU
3. State Aid and Fiscal Costs: Ma?gorzata Iwanicz-Drozdowska, El?bieta Malinowska-Misi?g and Bartosz Witkowski
3.1. State Aid for Financial Institutions During the Crisis: El?bieta Malinowska-Misi?g
3.1.1. General Rules for Granting State Aid
3.1.2. Guidelines for Granting State Aid to Financial Institutions
3.1.3. Guarantees for Liabilities of Financial Institutions
3.1.4. Recapitalisation of Financial Institutions
3.1.5. Assistance Related to Impaired Assets
3.1.6. Assistance for Liquidation
3.2. European Stability Mechanism and Assistance to EU Countries: El?bieta Malinowska-Misi?g
3.2.1. European Stability Mechanism
3.2.2. Assistance to Countries
3.2.2.1. Assistance to Greece
3.2.2.2. Assistance to Ireland
3.2.2.3. Assistance to Portugal
3.2.2.4. Assistance to Spain
3.2.2.5. Assistance to Cyprus
3.3. The Impact of Restructuring Costs on Public Finance: Ma?gorzata Iwanicz-Drozdowska, El?bieta Malinowska-Misi?g and Bartosz Witkowski
3.3.1. Burden on Public Finance: Ma?gorzata Iwanicz-Drozdowska and El?bieta Malinowska-Misi?g
3.3.2. Econometric Model: Ma?gorzata Iwanicz-Drozdowska and Bartosz Witkowski
4. Restructuring Tools and Their Costs: Ma?gorzata Iwanicz-Drozdowska, Pawe? Smaga and Bartosz Witkowski
4.1. General Assumptions: Ma?gorzata Iwanicz-Drozdowska
4.2. Comparative Analysis: Ma?gorzata Iwanicz-Drozdowska and Pawe? Smaga
4.3.Econometric Model: Ma?gorzata Iwanicz-Drozdowska and Bartosz Witkowski
4.4. Cluster Analysis: Ma?gorzata Iwanicz-Drozdowska and Bartosz Witkowski
5. Landscape After the Lessons of the Crisis: Ma?gorzata Iwanicz-Drozdowska, Jakub Kerlin and Pawe? Smaga
5.1. Economic Situation and Changes in EU Banking Sector After the Outbreak of the Crisis: Pawe? Smaga
5.2. Changes in Prudential Regulations and the Financial Safety Net: Ma?gorzata Iwanicz-Drozdowska
5.2.1. Changes in Prudential Regulations
5.2.2. Changes in Financial Safety Net
5.3. Banks' Restructuring and Resolution: Jakub Kerlin
5.3.1. The Genesis of the Restructuring and Resolution Regulations
5.3.2. Objectives and Rules of the Resolution Process
5.3.3. Resolution Authorities
5.3.4. Sequence of Actions
5.3.5. Resolution Tools
5.3.6. Funding of the Resolution Procedure
5.3.7. Evaluation of Solutions
5.4. Banking Union: Pawe? Smaga
5.4.1. Construction of the Banking Union
5.4.2. Evaluation of the Banking Union
6. Summary: Ma?gorzata Iwanicz-Drozdowska
Appendix: Case Studies of Restructured Banks and Asset Management Companies: Ma?gorzata Iwanicz-Drozdowska, Jakub Kerlin, Anna Koz?owska, El?bieta Malinowska-Misi?g, Agnieszka K. Nowak, Pawe? Smaga and Piotr Wi?niewski