«BRIDGE BANK» AS AN ANTI–CRISIS TOOL FOR RESOLUTION

The development of Ukraine's integration processes into the European space necessitates the search for innovative anti-crisis instruments for rehabilitation and resolution of bank insolvency harmonized with European legislation. One of such instruments is a bridge bank. The purpose of the article is to form an idea of the mechanisms of crisis management, with a special focus on the «bridge bank» as a tool for resolving bank insolvency. It is noted that although the mechanisms for dealing with insolvent banks vary from country to country, the methods of resolving bank insolvency are the same and include: liquidation (or closure of a bank); temporary administration (business conservation with subsequent restructuring); purchase and acquisition (P&A) (or transfer of business lines); «bridge bank» (or sale with the participation of the State). The prerequisites for removing insolvent banks from the market are defined. A set of requirements for the resolution of insolvent banks is formulated. It is noted that a «bridge bank» is one of the instruments used by national authorities in dealing with insolvent banks when there is a need to ensure the continuity of critical bank functions, preserve business value, confidence in financial markets and ensure financial stability. «A bridge bank is established as a new, temporary banking institution designed to support the bank's core business lines until a viable, permanent solution is found, primarily by finding a strategic investor. The period of existence of such a bank varies from one to five years (in some countries). It is engaged in conservative banking, complies with regulations, and is exempt from taxation. The author emphasizes that the «bridge bank» instrument is usually used only for systemically important banks, including in Ukraine.