- Overview
- Overview of the Resolution of Failed Financial Institutions
- Illustration of Failure Resolution Using a Bridge Bank
- Role of RCC as a Bridge Bank
Overview
Following the enforcement of the amended Deposit Insurance Act in October 2011, RCC was granted bridge bank functions in order to facilitate the smooth resolution of failed financial institutions.
Ergo, in the event of a financial institution's failure, RCC assumes two roles:
- as a bridge bank (bridge account), RCC temporarily succeeds the operations of the failed financial institution and serves as an intermediary, transferring them to a final receiving financial institution;
-for assets not assumed by the bridge bank, RCC conducts asset purchases, as well as management and recovery, by utilizing its accumulated expertise in collection (post-agreement account).
