06.12.2016 Journal of International Banking Law and Regulation • Mariana Solá de Albuquerque; Luís Branco

Resolving Banco Espirito Santo: An Overview of the Application of Recovery and Resolution Measures in Portugal

Full article available here [in English only].

A recovery and resolution framework for banks was central to the EU response to the 2007-2008 financial crisis. In 2014, the Bank of Portugal applied a resolution measure to Banco Espírito Santo SA (BES) by creating a bridge bank in oder to mitigate the impact of BES' failure in the Portuguese economy and financial system resulting in a two-year process, still ongoing.

"It is the innate conservation of the people that has kept our money good in spite of the fantastic tricks which financiers play - and which they cover up with high technical terms. The people are on the side of sound money. They are so unalterably on the side of sound money that it is a serious question how they would regard the system under which they live, if they once knew what the initiate can do with it."

Henry Ford, My Life and Work (1922)