Market-Based Policy Instruments for Systemic Bank Restructuring
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Summary:
Since the early 1980s, well over 100 countries have experienced systemic bank insolvencies. An important innovation among the resulting policies for reestablishing bank soundness has been the reliance on market-based instruments and policies, in contrast to the largely non-market-oriented approach taken in the 1930s during the last big wave of banking crises. This paper surveys and assesses market-based policy instruments employed to overcome systemic bank problems. Considerations regarding the design and mix of instruments as well as cost-sharing arrangements are shown to be key aspects of effective bank restructuring. Selected country examples are used to illustrate best practices.
Series:
Working Paper No. 1998/113
Subject:
Asset and liability management Asset management companies Bank resolution Banking Commercial banks Deposit insurance Financial crises Financial institutions Financial instruments Loans
English
Publication Date:
August 1, 1998
ISBN/ISSN:
9781451944235/1018-5941
Stock No:
WPIEA1131998
Pages:
25
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