{
  "title": "Two Approaches to Resolving Nonperforming Assets During Financial Crises",
  "publication": "IMF Working Papers, February 1, 2000",
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  "summary": "The unprecedented rise in nonperforming assets during the recent Asian financial crisis severely tested the limit and capacity of the existing asset management infrastructure, leading policymakers to consider new approaches to resolve them.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The paper examines two approaches that emerged during the recent Asian financial crisis to resolve nonperforming assets: the creation of asset management companies (AMCs) and the development of out-of-court centralized corporate debt workout frameworks.\n- It investigates the respective roles of these two approaches, evaluates their strengths and weaknesses, and seeks to benchmark best practices in their design.\n- The unprecedented rise in nonperforming assets during the crisis tested the limit and capacity of existing asset management infrastructure, prompting policymakers to consider these new approaches."
    },
    {
      "heading": "Key Findings and Themes",
      "content": "- Two central approaches defined the core asset management setting in countries most seriously affected by the crisis:\n  - Asset management companies (AMCs).\n  - Out-of-court centralized corporate debt workout frameworks.\n- The paper focuses on:\n  - Roles of asset management companies.\n  - Asset resolution process.\n  - Debt workout mechanisms.\n  - Issues concerning distressed assets and market value assessment.\n- Geographic and topical emphasis includes East Asia, foreign exchange considerations, and banking sector implications."
    },
    {
      "heading": "Evaluation: Strengths and Weaknesses",
      "content": "- The paper evaluates strengths and weaknesses of both AMCs and out-of-court debt workouts (details presented in the full working paper).\n- Considerations include institutional capacity, governance (AMC board, AMC management, AMC subsidiary), and the ability to handle large volumes of nonperforming assets."
    },
    {
      "heading": "Best Practices and Design Benchmarks",
      "content": "- The paper seeks to benchmark best practices in the design of:\n  - Asset management companies and their governance structures.\n  - Centralized out-of-court corporate debt workout frameworks.\n- Emphasis on designing processes to improve resolution speed, preserve market value, and coordinate creditors and banks (lead bank roles referenced).\n\n---\n\n Content in this bundle\n\n- Two Approaches to Resolving Nonperforming Assets During Financial Crises - WP/00/33\n  - Two Approaches to Resolving Nonperforming Assets During Financial Crises - WP/00/33 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Two Approaches to Resolving Nonperforming Assets During Financial Crises - WP/00/33 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/two-approaches-to-resolving-nonperforming-assets-during-financial-crises-3460"
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    "Authors: David Woo",
    "Published: February 1, 2000",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451845174.001",
    "The paper examines two approaches that emerged during the recent Asian financial crisis to resolve nonperforming assets: the creation of asset management companies (AMCs) and the development of out-of-court centralized corporate debt workout frameworks.",
    "It investigates the respective roles of these two approaches, evaluates their strengths and weaknesses, and seeks to benchmark best practices in their design.",
    "The unprecedented rise in nonperforming assets during the crisis tested the limit and capacity of existing asset management infrastructure, prompting policymakers to consider these new approaches.",
    "Two central approaches defined the core asset management setting in countries most seriously affected by the crisis:",
    "The paper focuses on:",
    "Geographic and topical emphasis includes East Asia, foreign exchange considerations, and banking sector implications.",
    "The paper evaluates strengths and weaknesses of both AMCs and out-of-court debt workouts (details presented in the full working paper).",
    "Considerations include institutional capacity, governance (AMC board, AMC management, AMC subsidiary), and the ability to handle large volumes of nonperforming assets.",
    "The paper seeks to benchmark best practices in the design of:",
    "Emphasis on designing processes to improve resolution speed, preserve market value, and coordinate creditors and banks (lead bank roles referenced).",
    "**Two Approaches to Resolving Nonperforming Assets During Financial Crises - WP/00/33**"
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