The procedure fully complied with the rules and procedures of the banking union and with those on State aid. Based on the European regulations underlying the Single Resolution Mechanism, if the European Central Bank concludes that a bank is ‘failing or likely to fail’, the SRB must verify whether there are alternative market or supervisory measures that would prevent the failure and, if not, whether to start the resolution procedure.
In the case of the two Veneto banks, the SRB decided that they did not satisfy the resolution requirements. As a result, in accordance with the same European regulations, an ordinary liquidation proceeding was initiated under Italian law, that is, compulsory administrative liquidation.
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