Legal treatment of banking crises, a comparative study

Abstract

Banks and the banking sector witness turmoil in their banking activity from time to time, and we may attribute these reasons to mismanagement, inability or weakness in the performance of their financial tasks and obligations towards depositors, which leads to the bank defaulting and disorder, and this may lead to the cessation of its commercial activity, which creates The banking crisis, and for that, legislation has been keen to protect the banking sector through the central bank’s guardianship over it, which is the highest banking authority in the banking sector, Which works many procedures all for the purpose of preserving the bank’s activity and depositors ’deposits, and it may be one of the central bank’s procedures to rehabilitate the bank through many procedures followed by the latter, and it may be the establishment of a bridge bank owned by the latter, unlike what is decided in the French legislation, which is the restoration Qualifying the bank through the request of representatives of the bank itself without imposing guardianship and stopping its activity