International Bank Crisis Management

Marco Bodellini is Lecturer in Banking and Financial Law at the University of Bergamo, Italy, and Research Scientist in Sustainable Finance Law at the House of Sustainable Governance & Markets, University of Luxembourg.

1. International Bank Crisis Management: Framing the Key Definitions and Drawing the Perimeter of the Analysis
I. Introduction
II. Bank Crisis Management: Framing the Key Definitions
III. Other Relevant Definitions
IV. Jurisdiction-Specific Definitions
V. The Perimeter of the Analysis

2. The Bank Supervisory and Crisis Management Architecture in the EU, UK and US
I. Introduction
II. The European Banking Union
III. The UK Bank Supervisory and Crisis Management Architecture
IV. The US Bank Supervisory and Crisis Management Architecture

3. The First Lines of Defence: Bank Capital and Early Intervention Measures
I. Introduction
II. The Concept of Capital and the Rationale behind Minimum Bank Capital Requirements
III. Capital Requirements and the Role of the Basel Committee on Banking Supervision
IV. The Adoption of Basel I
V. The Adoption of Basel II
VI. The Adoption of Basel III
VII. The Adoption of Basel IV
VIII. Early Intervention Measures
IX. The Effectiveness of Capital and Early Intervention Measures as First Lines of Defence

4. The Crisis of Non-Systemic Institutions: Bank Insolvency Regimes
I. Introduction
II. The New EU Regime and its Weaknesses
III. Towards the Establishment of a New EU Harmonised Bank Insolvency Regime Inspired by the Italian, UK and
US Frameworks and Experiences
IV. The Italian Legal Framework
V. Compulsory Administrative Liquidation under Italian Law
VI. Bank Liquidation and the EU State Aid Framework: The So-called Liquidation Aid
VII. The UK Regime
VIII. The US Regime
IX. Receivership
X. The FDIC Strategies
XI. Concluding Remarks

5. The Crisis of Systemic Institutions: Resolution and Orderly Liquidation Authority
I. Introduction
II. Resolution in the EU
III. The Resolution Tools
IV. Bail-in
V. Resolution Funds
VI. The Provision of Public Funds in the Context of Resolution and the Interaction between the Resolution Regime and the State Aid Framework
VII. Impediments to Resolvability
VIII. Resolution within the Banking Union
IX. The UK Regime
X. The US Regime: The Orderly Liquidation Authority
XI. Concluding Remarks

6. Deposit Guarantee Schemes
I. Introduction
II. The Functions Performed by Deposit Guarantee Schemes in Bank Crises
III. The Interplay between the Legislation on DGSs and the State Aid Regime
IV. The Key Contributions of DGSs in Handling Bank Crises
V. The General Court of the European Union and the Court of Justice of the European Union Judgments
in the Banca Tercas Case
VI. The Current Legal Constraints to DGSs’ Optional Interventions in Bank Crises
VII. Deposit Insurance in the US
VIII. A Limited-Scope Reform Proposal to Allow DGSs to Play a Leading Role in Bank Crises

7. The Legacy of the COVID-19 Crisis: The Non-Performing Loan Problem
I. Introduction
II. Non-Performing Loans
III. How to Tackle the Non-Performing Loan Problem: Asset Management Companies
IV. Types of NPLs to Transfer
V. Transfer Price
VI. Capital and Funding Structure and Governance Arrangements
VII. Concluding Remarks

8. Conclusions