Does Bank Resolution Rule out the Use of Public Funds? The Case of the Podkarpacki Bank Spółdzielczy

On 15 January 2020 Polish resolution authority made a decision to launch the of regional cooperative bank. The aim was maintain service local government units, considered as critical function tool used bridge bank combined with bail-in subordinated bonds and unguaranteed deposits, including deposits from units. author is opinion that write-off public entities substitute insufficient amount liabilities contractually eligible for bail-in, served instrument enhancing credibility well protecting other creditors excessive losses (i.e. mitigating contagion risk). presented case resolution, has been assessed an example intentionally bending stiff BRRD rules unusual find practical, socially acceptable solution. By comparing this small banks in EU, argues national authorities seek limit scope try use financial arrangements within more secure banking sector manner.