Bank Restructuring and Resolution (eBook)

A. MICHAEL ANDREWS Head of Consultancy, A. Michael Andrews and Associates, USA CHARLES A. ENOCH Deputy Director, Monetary and Financial Systems Department, International Monetary Fund (IMF), USA EDWARD J. FRYDL Senior Economist, Financial Systems Surveillance Division II, Monetary and Financial Systems Department, International Monetary Fund (IMF), USA ANNE-MARIE GULDE Advisor, African Department, International Monetary Fund (IMF), USA DANIEL C. HARDY Deputy Division Chief, Financial Surveillance Policy Division, Monetary and Financial Systems Department, International Monetary Fund (IMF), USA DONG HE Division Head, External Department, Hong Kong Monetary Authority, Hong Kong STEFAN INGVES Governor, The Riksbank, Sweden MATS ARNE JOSEFSSON Advisor, Monetary and Financial Systems Department, International Monetary Fund (IMF), USA CHUNGWON KANG Former Visiting Scholar, International Monetary Fund (IMF), USA GEORGE G. KAUFMAN Professor, School of Business, Loyola University, Chicago, USA ROSS B. LECKOW Assistant General Council, International Monetary Fund (IMF), USA MARC G. QUINTYN Advisor and Technical Assistance Area Chief, Monetary and Financial Systems Department, International Monetary Fund (IMF), USA STEVEN A. SEELIG Advisor, Monetary and Financial Systems Department, International Monetary Fund (IMF), USA INWON SONG Senior Financial Sector Expert, Financial Supervision and Regulation Division, Monetary and Financial Systems Department, International Monetary Fund (IMF), USA

Cover 1
Half-Title 2
Title 4
Copyright 5
Contents 6
List of Tables 8
List of Figures 10
List of Boxes 11
List of Abbreviations 12
Acknowledgments 14
Foreword 15
Preface 16
Notes on Contributors 20
I. Overview of Crisis Resolution and Bank Restructuring Policies 21
1. The Resolution of Systemic Banking System Crises 22
2. The Benefits and Costs of Intervening in Banking Crises 43
II. Options for Bank Restructuring 113
3. Techniques of Bank Resolution 114
4. Issuing Government Bonds to Finance Bank Recapitalization and Restructuring: Design Factors that Affect Banks' Financial Performance 136
5. What Happens After Supervisory Intervention? Considering Bank Closure Options 159
6. Post-Resolution Treatment of Depositors at Failed Banks: Implications for the Severity of Banking Crises, Systemic Risk, and Too-Big-To-Fail 180
7. The IMF/World Bank Global Insolvency Initiative—Its Purpose and Principal Features 201
III. Options for Asset Management 213
8. Prudential Treatment of Restructured Loans 214
9. Issues in the Establishment of Asset Management Companies 227
IV. Country Experiences 242
10. From the Front Lines at Seoul Bank: Restructuring and Reprivatization 243
11. Banking Crises and Bank Resolution: Experiences in Some Transition Economies 282
12. Interventions in Banks During Banking Crises: The Experience of Indonesia 343
13. The Role of KAMCO in Resolving Nonperforming Loans in the Republic of Korea 362
14. The Public Sector Recapitalization Program in Turkey 383
Index 399