Bank of Portugal splits failed bank BES in 'clean’ resolution
Grant Lewis says ECB health check led to revelation of bank’s problems
The Bank of Portugal announced a package of resolution measures for the beleaguered Banco Espírito Santo (BES) last night, which saw BES split in two and the ‘good bank' recapitalised with €4.9 billion ($6.6 billion).
The viable assets held by BES have been transferred to a new institution – Novo Banco – which received a loan of €4.9 billion from the country's resolution fund, so "the state will bear no costs" in the process, according to the Bank of Portugal.
The fund is made up of
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