The study is expected to assess the application of the state aid rules for banks in difficulty, their:

(i) impact on financial stability,

(ii) impact on competition,

(iii) impact on long-term viability of aided banks,

(iv) impact on market discipline, and

(v) efficiency.

The study is expected to analyse the available specialised literature and market data in detail and provide an independent quantitative and qualitative assessment of the above-mentioned aspects in terms of effectiveness and efficiency, supported by thorough collection of evidence. As a result, the study should serve the contracting authority as input for the evaluation of the State aid rules applicable to banks in difficulty since their entry into force in end-2008, in line with the Commission’s Better Regulation principles.

Study on the impact of state aid rules for banks in difficulty.