How it works
The authority sells the bank — or selected assets and liabilities — on commercial terms, in a process as open and transparent as the circumstances allow, with the proceeds flowing to the estate rather than to the state. Because the transfer needs no shareholder approval, it can be executed overnight; regulatory approvals for the purchaser are fast-tracked.
Track record
It is the tool with which the framework's live cases have actually been executed: Banco Popular transferred to Banco Santander (2017), Sberbank's Croatian and Slovenian subsidiaries sold to local banks (2022), and — under the UK's parallel regime — Silicon Valley Bank UK transferred to HSBC (2023). Its attraction is finality: depositors wake up as customers of a solvent institution, and no bridge structure needs to be run down later.