The Economics of Bank Restructuring: Understanding the Options

Author/Editor: Landier, Augustin ; Ueda, Kenichi
Publication Date: June 05, 2009
Electronic Access: Free Full text (PDF file size is 1,011KB).
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Summary: Based on a simple framework, this note clarifies the economics behind bank restructuring and evaluates various restructuring options for systemically important banks. The note assumes that the government aims to reduce the probability of a bank’s default and keep the burden on taxpayers at a minimum. The note also acknowledges that the design of any restructuring needs to take into consideration the payoffs and incentives for the various key stakeholders (i.e., shareholders, debt holders, and government).
Series: Staff Position Note No. 2009/12
Subject(s): Asset liquidation | Asset management | Asset prices | Bank resolution | Bank restructuring | Banking sector | Banks | Cross country analysis | Debt restructuring | Economic models | Switzerland | United Kingdom | United States

Publication Date: June 05, 2009
ISBN/ISSN: 978-1-58906-869-8 / 2072-3202 Format: A web quality merged PDF
Stock No: SPNET2009012 Pages: 39
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