EN-8.2.2
Although Article 136 of the CBB Law specifies the circumstances in which the Central Bank may pursue an administration, it does not oblige the Central Bank to administer a licensee. Faced with the circumstances described, the Central Bank may pursue other courses of action such as suspension of a license (under Article 131 of the CBB Law), if it considers that these are more likely to achieve the supervisory outcomes sought. Because an administration is likely to send a negative signal to the markets about the status of a licensee, other supervisory actions may in fact be preferable in terms of protecting the interests of those with a claim on the licensee.
Added: October 2007