Resolution And Insolvency Of Banks And Financial Institutions

Resolution and Insolvency of Banks and Financial Institutions PDF
Author: Michael Schillig
Publisher:
ISBN: 9780191008610
Size: 20.28 MB
Format: PDF, ePub, Docs
Category :
Languages : en
Pages :
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The book discusses the legal mechanisms available in the EU and the United States to deal with banks and other financial institutions that are in financial distress. It analyses the impact of the Bank Recovery and Resolution Directive looking at implementation in the UK and Germany, and uses US law as a comparative reference point.

Bank Restructuring And Resolution

Bank Restructuring and Resolution PDF
Author: David S. Hoelscher
Publisher: Springer
ISBN: 0230289142
Size: 30.98 MB
Format: PDF, Kindle
Category : Business & Economics
Languages : en
Pages : 391
View: 6679

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Systemic financial crises have become a common feature of the global financial landscape. Resolution of such crises requires a complex mix of macroeconomic and financial sector policies, including the restructuring and resolution of problem banks. This volume outlines the theoretical insights that have been gained and the practical lessons learned.

The Need For Special Resolution Regimes For Financial Institutions The Case Of The European Union

The Need for Special Resolution Regimes for Financial Institutions   The Case of the European Union PDF
Author: Mr.Martin Cihak
Publisher: International Monetary Fund
ISBN: 1451873476
Size: 66.46 MB
Format: PDF, Kindle
Category : Business & Economics
Languages : en
Pages : 29
View: 4532

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The global financial crisis has demonstrated weaknesses in resolution regimes for financial institutions around the globe, including in the European Union (EU). This paper considers the principles underlying resolution regimes for financial institutions, and draws out how a well-designed resolution regime can expand the toolset available for crisis management. Introducing, or in some cases expanding the scope, of these regimes is pressing to achieve more effective responses to ongoing financial sector weaknesses across the EU.

Systemic Financial Crises

Systemic Financial Crises PDF
Author: Douglas Darrell Evanoff
Publisher: World Scientific
ISBN: 9812563482
Size: 31.70 MB
Format: PDF, ePub
Category : Business & Economics
Languages : en
Pages : 461
View: 7075

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Bank failures, like illness and taxes, are almost a certainty at some time in the future. What is less certain is their cost to and adverse implications for macroeconomies. Past failures have frequently been resolved at very high cost to society. However, the cost could be reduced through having a well-developed, credible and widely publicized plan ready to put into action by policymakers. If no such plan is ready when a large bank approaches insolvency, political pressures are likely to influence the response of regulators.Minimizing immediate, short-run costs are likely to outweigh minimizing further out, longer-run and longer-lasting costs, even if these delayed costs promise to be substantially greater. Stated differently, today will win out over tomorrow and politics will trump economics. How best to prevent such unfavorable outcomes is the major theme of this volume. The articles presented review past insolvency resolutions, draw lessons from these resolutions, discuss impediments to efficient resolutions ? including cross-country, cross-regulator, and institutional challenges ? and recommend how to move forward.

The Need For Special Resolution Regimes For Financial Institutions The Case Of The European Union

The Need for Special Resolution Regimes for Financial Institutions   The Case of the European Union PDF
Author: Mr.Martin Cihak
Publisher: International Monetary Fund
ISBN:
Size: 60.77 MB
Format: PDF, ePub, Docs
Category : Business & Economics
Languages : en
Pages : 29
View: 2253

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The global financial crisis has demonstrated weaknesses in resolution regimes for financial institutions around the globe, including in the European Union (EU). This paper considers the principles underlying resolution regimes for financial institutions, and draws out how a well-designed resolution regime can expand the toolset available for crisis management. Introducing, or in some cases expanding the scope, of these regimes is pressing to achieve more effective responses to ongoing financial sector weaknesses across the EU.

Georgia Financial Sector Assessment Program Safety Nets Bank Resolution And Crisis Preparedness And Management Arrangements Technical Note

Georgia  Financial Sector Assessment Program Safety Nets  Bank Resolution  and Crisis Preparedness and Management Arrangements  Technical Note PDF
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
ISBN: 1475593252
Size: 25.37 MB
Format: PDF, ePub, Mobi
Category : Business & Economics
Languages : en
Pages : 33
View: 7569

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Recent experience in handling troubled banks was limited. The National Bank of Georgia (NBG) is the lead authority responsible for managing problem banks, as it can appoint a temporary administrator, declare a bank as insolvent and bankrupt, and commence a liquidation procedure. In the 1990s, market entry was not subject to significant restrictions, and the number of banks operating in Georgia reached a peak of 229 in 1994. Since then, the authorities have commenced a significant number of liquidation procedures, and the last cases based on insolvency grounds have been closed in 2009. Therefore, the legal framework for bank resolution and liquidation has not been applied to a significant extent in recent times. The framework for emergency liquidity assistance (ELA) has been improved, but enhancement is needed to protect the NBG against financial risk. The NBG is explicitly authorized to provide ELA to commercial banks that are considered to be viable, and a 2012 NBG decree sets out certain procedural rules governing the disbursement of the ELA. However, when financial stability is endangered, rules on collateral, interest rate, and duration of the facility can be relaxed. This special carve-out can expose the NBG to financial risks—the existence of a systemic threat, rather, calls for a role to be played by the government. Moreover, provisions on collateral, interest rate, and duration should be updated to better take into account the specificities of ELA, and accountability mechanisms should be enhanced. The bank resolution and liquidation regime presents important shortcomings. The NBG can take control of a problem bank by appointing a temporary administrator, which can, in theory, arrange for certain resolution transactions. The bank liquidation framework is prescribed in more detail, given the significant experience gained by the NBG in the past. However, the bank resolution framework lacks a number of important features and several amendments are needed to update it in line with emerging international best practices, with a view to enabling the authorities to implement a speedy and cost-effective resolution process.

Czech Republic

Czech Republic PDF
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1475579926
Size: 11.91 MB
Format: PDF, ePub, Docs
Category : Business & Economics
Languages : en
Pages : 31
View: 5404

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The Czech financial system is confronted with mounting risks that stem mainly from negative developments in the European Union (EU). This technical note focuses on crisis management and bank resolution framework for the Czech Republic. It summarizes the high-level observations of the mission based on its key findings and recommendations, and analyzes the existing institutional framework and coordination arrangements for crisis management. The note also examines the cross-border dimension of crisis preparedness and crisis management tools.

Cross Border Banking

Cross border Banking PDF
Author: Gerard Caprio
Publisher: World Scientific
ISBN: 981277341X
Size: 77.23 MB
Format: PDF, Docs
Category : Business & Economics
Languages : en
Pages : 477
View: 4851

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Cross-border banking, while having the potential for a more efficient financial sector, also creates potential challenges for bank supervisors and regulators. It requires cooperation by regulatory authorities across jurisdictions and a clear delineation of authority and responsibility. That delineation is typically not present and regulatory authorities often have significantly different incentives to respond when cross-border-active banks encounter difficulties. Most of these issues have only begun to be seriously evaluated. This volume, one of the first attempts to address these issues, brings together experts and regulators from different countries. The wide range of topics discussed include: the current landscape of cross-border bank activity, the resulting competitive implications, emerging challenges for prudential regulation, safety net concerns, failure resolution issues, and the potential future evolution of international banking. This book has been selected for coverage in: . OCo Index to Social Sciences & Humanities Proceedings- (ISSHP- / ISI Proceedings). OCo Index to Social Sciences & Humanities Proceedings (ISSHP CDROM version/ISI Proceedings). Sample Chapter(s). Chapter 1: Cross-Border Banking: Forces Driving Change and Resulting Regulatory Challenges (363 KB). Contents: Special Addresses: Cross-Border Banking: Forces Driving Change and Resulting Regulatory Challenges (M H Moskow); Cross-Border Banking and the Challenges Faced by Host Country Authorities (G Ortiz); Survey of the Current Landscape: Risks in US Bank International Exposures (N Cetorelli & L S Goldberg); Cross-Border Banking in Asia: Basel II and Other Prudential Issues (S Hohl et al.); Competitive Implications: Competitive Implications of Cross-Border Banking (S Claessens); Bank Concentration and Credit Volatility (A Micco & U Panizza); Prudential Regulation Issues: Home and Host Supervisors' Relations from a Host Supervisor's Perspective (P Bednarski & G Bielicki); Basel II Home Host Issues (P Jackson); Market Discipline Issues: Confronting Divergent Interests in Cross-Country Regulatory Arrangements (E J Kane); Market Discipline Issues Associated with Cross-Border Banking (D D Evanoff); Safety Net Issues: The Lender of Last Resort in the European Single Financial Market (G J Schinasi & P G Teixeira); Payment Systems and the Safety Net: The Role of Central Bank Money and Oversight (J Stehm); Insolvency Resolution Issues: Banking in a Changing World: Issues and Questions in the Resolution of Cross-Border Banks (M Krimminger); Bank Insolvency Procedures as Foundation for Market Discipline (A Angkinand & C Wihlborg); Policy Panel: Where to from Here?: Comments on Cross-Border Banking: Regulatory Challenges (C Calari); Designing the Home-Host Relationship to Support in Good Times and Bad: Trans-Tasman Developments (A Orr); and other papers. Readership: Professors teaching financial institutions, banking, financial regulation, or international financial markets; research economists interested in financial markets and institutions; financial regulators and policy-makers; financial consultants with internationally active customers."

Research Handbook On Cross Border Bank Resolution

Research Handbook on Cross Border Bank Resolution PDF
Author: Matthias Haentjens
Publisher: Edward Elgar Publishing
ISBN: 1786435985
Size: 75.75 MB
Format: PDF, ePub, Docs
Category : Law
Languages : en
Pages : 448
View: 2259

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Since 2008, many countries across the globe have witnessed the introduction of new recovery and resolution regimes for banks. Whereas much may have been achieved on regional levels, this has not been perfect, and many global challenges remain unsolved. The Research Handbook on Cross-Border Bank Resolution analyses the strengths and weaknesses of the current regulatory framework for cross-border bank crises with contributions from eminent experts from the US, EU, Japan and China. The topic is addressed from both economic, and legal perspectives, with a special section devoted to real-life cases.

The European Banking Union

The European Banking Union PDF
Author: Giuseppe Boccuzzi
Publisher: Springer
ISBN: 1137555653
Size: 76.60 MB
Format: PDF, Kindle
Category : Business & Economics
Languages : en
Pages : 219
View: 3948

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The 2008 financial crisis all but brought down the financial system and real economies of industrial countries. The Banking Union took a broad approach to resolve the structural fragmentation and distortions in the European banking system which were major obstacles to a working single market for financial services. This book examines the numerous changes happening to European legislations for the prevention and management of banking crises. What emerges is a changing picture of regulations and institutions, of goals, tools and opinions, public and private, European and national all involved in the task. The book focuses on the new framework for banking crisis management, starting from the foundations of banking regulation and supervision. It explores the institutional architecture of banking supervision and crisis management, the powers of the authorities, the tools for administrative actions, the complexities of business and bankruptcy laws, individual rights and their legal guarantees.

Managing Risk In The Financial System

Managing Risk in the Financial System PDF
Author: John Raymond LaBrosse
Publisher: Edward Elgar Publishing
ISBN: 0857933825
Size: 73.71 MB
Format: PDF, Docs
Category : Business & Economics
Languages : en
Pages : 482
View: 7502

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Incisive, authoritative and thoughtful, this important and timely collection of papers exploring the unresolved issues left by the recent global financial turmoil, will undoubtedly shape the policy responses to come. Interdisciplinary in approach and wide-ranging in jurisdictional scope, it draws together influential commentators, practitioners and regulators, to create a new milestone in the search for the fundamentals of a more stable global financial system.? - Eva Lomnicka, King?s College London, UK ?This book contains a large number of chapters, nearly 30 in all, by acknowledged experts on various aspects of the recent financial crisis. Whichever aspect of this crisis that may interest you, such as bank taxes, deposit insurance, TBTF and how to respond, cross-border issues, and many, many others, you will find chapters that are both authoritative and stimulating in this collection. The editors are to be congratulated not only in their selection of authors but also in the speed with which they have taken them from conference presentation to book chapter.? - Charles Goodhart, London School of Economics, UK Managing Risk in the Financial System makes important and timely contributions to our knowledge and understanding of banking law, financial institution restructuring and related considerations, through the production of an innovative, international and interdisciplinary set of contributions which link law and policy issues surrounding systemic risk and crisis management. The recent financial crisis has exposed both the banking industry and financial system safety net players in many countries to a considerable level of distress as well as economic and reputational damage. These circumstances have heightened the need for policymakers to consider remedial measures under a broad umbrella that encompass inter alia prompt corrective actions, early closure of distressed entities, deposit insurance, bail-outs, state-aid, bank resolution and restructuring techniques. These essays provide an important contribution to research in this area, at a crucial time in the debate around the future financial industry. Contributors

Malta

Malta PDF
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
ISBN: 1513520814
Size: 73.65 MB
Format: PDF, ePub, Docs
Category : Business & Economics
Languages : en
Pages : 40
View: 2913

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This Note analyzes laws, policies, and procedures for bank failure mitigation and resolution, and for preparation and management of a financial crisis in Malta. It addresses the supervision of bank recovery plans, early intervention when problems are identified, resolution planning, resolution funding, and deposit insurance. Until recently, Malta had no bank failures since the 1970’s; two banks have failed in the past two years, and these experiences are assessed.

The Polish Bank Insolvency Regime

The Polish Bank Insolvency Regime PDF
Author: John D. Pollner
Publisher:
ISBN:
Size: 67.32 MB
Format: PDF, ePub
Category :
Languages : en
Pages :
View: 1292

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The bank insolvency framework in Poland should be modernized to ensure financial stability, maintain the continuity of critical functions in the banking system, and protect depositors and creditors, while assigning losses according to a pre-established creditor hierarchy. Several country experiences in Europe and elsewhere have demonstrated the effectiveness of new bank resolution measures by the European commission. A key aspect of the resolution process is for the authorities to swiftly assess and revalue the balance sheet of the intervened bank. Other particularities of modern resolution procedures relate to maintaining the integrity of secured financial contracts to prevent disruptions in financial market transactions including in payments and settlements systems. The treatment of systemically important institutions should rely on extraordinary resolution tools which are necessary if a bank is too large to be purchased or for its liabilities to be readily assumed. The purpose of this paper is thus to describe and recommend new features that can be added to strengthen the Polish legislation for handling commercial bank insolvencies. The paper focuses on the legal issues related to insolvency of banks (including commercial banks and cooperative banks). The banking sector's share in the total assets of the credit sector amounts to 89 percent while cooperative banks control 6 percent. The only wholly-owned state bank is the development bank Bank Gospodarstwa Krajowego (BGK) which is subject to supervision by the Polish Financial Supervisory Authority (KNF).

Research Handbook On Crisis Management In The Banking Sector

Research Handbook on Crisis Management in the Banking Sector PDF
Author: Matthias Haentjens
Publisher: Edward Elgar Publishing
ISBN: 1783474238
Size: 80.35 MB
Format: PDF, ePub
Category : Business & Economics
Languages : en
Pages : 624
View: 2368

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In this timely Handbook, over 30 prominent academics, practitioners and regulators from across the globe provide in-depth insights into an area of law that the recent global financial crisis has placed in the spotlight: bank insolvency law. Research Handbook on Crisis Management in the Banking Sector discusses the rules that govern a bank insolvency from the perspectives of the various parties that are affected by these rules. Thus, whilst many bank insolvency rules have been enacted only recently and their application is still clouded by a host of uncertainties, this book takes the perspectives of the relevant authorities, of the bank and of the bank’s counterparties. Providing a comprehensive approach to crisis management in the banking sector, this Handbook will prove a valuable resource for academics, postgraduate students, practitioners and international policymakers.

International Financial Instability

International Financial Instability PDF
Author: Douglas Darrell Evanoff
Publisher: World Scientific
ISBN: 9812708731
Size: 76.98 MB
Format: PDF
Category : Business & Economics
Languages : en
Pages : 479
View: 3159

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This book explores the potential and problems of bank safety and efficiency arising from the rapidly growing area of cross-border banking in the form of branches or subsidiaries with primarily only national prudential regulation. There are likely to be differences in the treatment of the same bank operating in different countries or of different banks from different home countries operating in the same country with respect to deposit insurance provisions, declaration of insolvency, resolution of insolvencies, and lender of last resort protection. The book identifies these protection problems and discusses possible solutions, such as greater cross-border cooperation, harmonization and organizations. The contributors to this book include experts from different countries and from a wide range of affiliations, including academia, regulators, practitioners, and international organizations. Sample Chapter(s). Chapter 1: Cross-Border Banking Regulation OCo A WayForward: The European Case (68 KB). Contents: Special Addresses: Cross-Border Banking Regulation OCo A Way Forward: The European Case (Stefan Ingves); Remarks before the Conference on International Financial Instability (Sheila C Bair); Benign Financial Conditions, Asset Management, and Political Risks: Trying to Make Sense of Our Times (Raghuram G Rajan); International Financial Instability: Cross-Border Banking and National Regulation Chicago OCo Dinner Remarks (Jean Pierre Sabourin); Landscape of International Banking and Financial Crises: Current State of Cross-Border Banking (Dirk Schoenmaker & Christiaan van Laecke); Actual and Near-Miss Cross-Border Crises (Carl-Johan Lindgren); A Review of Financial Stability Reports (Sander Oosterloo, Jakob de Haan, & Richard Jong-A-Pin); Discussion of Landscape of International Banking and Financial Crises (Luc Laeven); Causes and Conditions for Cross-Border Instability Transmission and Threats to Stability: Cross-Border Contagion Links and Banking Problems in the Nordic Countries (Bent Vale); Currency Crises, (Hidden) Linkages, and Volume (Max Bruche, Jon Danielsson & Gabriele Galati); What Do We Know about the Performance and Risk of Hedge Funds? (Triphon Phumiwasana, Tong Li, James R Barth & Glenn Yago); Remarks on Causes and Conditions of Financial Instability Panel (Garry Schinasi); Prudential Supervision: Home Country versus Cross-Border Negative Externalities in Large Banking Organization Failures and How to Avoid Them (Robert A Eisenbeis); Conflicts between Home and Host Country Prudential Supervisors (Richard J Herring); Cross-Border Nonbank Risks and Regulatory Cooperation (Paul Wright); Challenges in Cross-Border Supervision and Regulation (Eric Rosengren); Government Safety Net: Bagehot and Coase Meet the Single European Market (V tor Gaspar); Banking in a Changing World: Issues and Questions in the Resolution of Cross-Border Banks (Michael Krimminger); International Banks, Cross-Border Guarantees, and Regulation (Andrew Powell & Giovanni Majnoni); Deposit Insurance, Bank Resolution, and Lender of Last Resort OCo Putting the Pieces Together (Thorsten Beck); Insolvency Resolution: Cross-Border Resolution of Banking Crises (Rosa Mar a Lastra); Bridge Banks and Too Big to Fail: Systemic Risk Exemption (David G Mayes); Prompt Corrective Action: Is There a Case for an International Banking Standard? (Mar a J Nieto & Larry D Wall); Insolvency Resolution: Key Issues Raised by the Papers (Peter G Brierley); Cross-Border Crisis Prevention: Public and Private Strategies: Supervisory Arrangements, LOLR, and Crisis Management in a Single European Banking Market (Arnoud W A Boot); Regulation and Crisis Prevention in the Evolving Global Market (David S Hoelscher & David C Parker); Derivatives Governance and Financial Stability (David Mengle); Cross-Border Crisis Prevention: Public and Private Strategies (Gerard Caprio, Jr.); Where to from Here: Policy Panel: Cross-Border Banking: Where to from Here? (Mutsuo Hatano); Remarks on Deposit Insurance Policy (Andrey Melnikov); The Importance of Planning for Large Bank Insolvencies (Arthur J Murton); Where to from Here: Policy Panel (Guy Saint-Pierre); Some Private-Sector Thoughts on Home/Host-Country Supervisory Issues (Lawrence R Uhlick). Readership: Academics and upper-level undergraduate or graduate students in the areas of financial institutions, banking, financial regulation, or international financial markets; financial regulators, policy-makers, and consultants."

International Bank Insolvencies A Central Bank Perspective

International Bank Insolvencies A Central Bank Perspective PDF
Author: Mario Giovanoli
Publisher: Springer
ISBN:
Size: 41.48 MB
Format: PDF, ePub, Docs
Category : Business & Economics
Languages : en
Pages : 432
View: 1970

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The globalisation of the world economy poses significant challenges for policy makers, regulators and legal professionals. The Asian and Brazilian financial crises have shown that difficulties in the banking sectors of some economies can have serious repercussions across world financial markets. It is clear that a sound legal infrastructure is crucial to promote financial stability in this global market. Particularly in the case of international bank failures, the need for harmonised and effective international insolvency procedures is becoming increasingly apparent. It is against this background that the Bank for International Settlements organised a workshop on International Bank Insolvencies in the summer of 1998. This unique book presents the edited workshop papers by expert lawyers from over twenty national central banks, the European Central Bank, the Basle Committee on Banking Supervision and the UN Commission on International Trade Law. Nineteen country reports provide a comprehensive overview of central banks and other institutions responsible for banking supervision and the co-ordination between authorities involved in insolvency procedures. The authors further discuss the instruments employed for crisis prevention and resolution and issues arising in the aftermath of a bank failure in the respective jurisdictions. In addition, twelve expert papers discuss issues ranging from specific national experiences to attempts at co-operation and harmonisation at regional and international level. The book further includes in an annex the text of the UNCITRAL Model Law on Cross-Border Insolvency and the EC Finality Directive.