EC approves resolution scheme of Banco Popular - RTRS

The European Commission (EC) came out with a statement on Wednesday, stating that it has approved a resolution scheme of Spain's Banco Popular Espanol based on a proposal prepared by the Single Resolution Board, Reuters reports.

 The Commission said, “"All depositors continue to have uninterrupted access to the full amount of their deposits. Following the resolution decision, the bank can continue its business activities."

"The Commission has endorsed the resolution scheme because ...the bank was failing, there were no private sector solutions outside of resolution and there were no supervisory actions that would have prevented its failure. It was the best course of action to ensure the continuity of the important functions performed by the bank and to avoid significant adverse effects on financial stability. In this specific case, losses were fully absorbed by shares and subordinated debt," it concluded.