Authorities' Roles and Organizational Issues in Systemic Bank Restructuring

Author/Editor:

Peter Nyberg

Publication Date:

July 1, 1997

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Systemic bank restructuring must be the responsibility of one government authority only, with other authorities providing support and analytical help. The restructuring authority, whose tasks are enumerated and discussed, should preferably be a separate and temporary agency reporting to the finance ministry. Other solutions are possible but not recommended. Parliament should be involved in setting priorities and supervising the process, but political interference in restructuring operations should be avoided. Practical issues to consider include ensuring efficient cooperation between authorities; the arrangement of problem asset workout and recovery; and restructuring of politically sensitive enterprises.

Series:

Working Paper No. 1997/092

Subject:

Bank resolution Bank supervision Banking Commercial banks Legal support in revenue administration

English

Publication Date:

July 1, 1997

ISBN/ISSN:

9781451951516/1018-5941

Stock No:

WPIEA0921997

Pages:

17

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