Under the "resolution measure," the healthy assets and businesses of BES will be spun off into a new bank ("Novo Banco," provisionally), while problem assets will remain with the vestigial entity, and losses will be borne by shareholders and subordinated creditors. Novo Banco will be recapitalized by Portugal's central bank and rebranded. The collapse came just weeks after the central bank expressed confidence that BES had adequate capital reserves to weather its exposure to Espirito Santo, which filed for protection from its creditors in July after a central bank audit turned up accounting irregularities. The European Commission quickly determined that the resolution plan complies with bloc rules governing state aid, which do not require contributions from depositors or senior debt holders in bank failure cases. According to the EC, "a disorderly resolution of BES could create a serious disturbance in the Portuguese economy and … the creation of the bridge bank is suitable to remedy that disturbance." The Eurozone is in the process of finalizing a "single resolution mechanism" pursuant to which the European Central Bank would take charge of dismantling and winding down failed financial institutions, but the procedures will not be implemented until 2016.