Practical Guidelines for Effective Bank Resolution

Bolzico, Javier; Mascaró, Yira; Granata, Paola

doi:10.1596/1813-9450-4389

Publication:
Practical Guidelines for Effective Bank Resolution

dc.contributor.author	Bolzico, Javier
dc.contributor.author	Mascaró, Yira
dc.contributor.author	Granata, Paola
dc.date.accessioned	2012-06-08T17:35:14Z
dc.date.available	2012-06-08T17:35:14Z
dc.date.issued	2007-11
dc.description.abstract	This study adopts a practical approach in developing a set of guidelines on designing a bank resolution framework and implementing efficient bank resolution methods in Latin America. It identifies six pillars that are useful for establishing a bank resolution framework. The study aims to guide policymakers choose from a set of bank resolution methods, by outlining their advantages and disadvantages and establishing efficiency requirements. The focus is on the good-bank/bad-bank approach, which is a type of purchase and assumption mechanism that has increasingly become part of the newer legal frameworks in Latin America. The good-bank/bad-bank approach is an effective bank resolution method because it can be very successful in meeting certain efficiency criteria, including the minimization of contagion costs and preservation of business.	en
dc.identifier	http://documents.worldbank.org/curated/en/2007/11/8667097/practical-guidelines-effective-bank-resolution
dc.identifier.uri	http://hdl.handle.net/10986/7548
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper; No. 4389
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	ACCESS TO FINANCE
dc.subject	ACCESS TO INFORMATION
dc.subject	ACCOUNT HOLDERS
dc.subject	ACCOUNTABILITY
dc.subject	ACCOUNTING
dc.subject	ACCOUNTING POLICIES
dc.subject	ACCOUNTING STANDARD
dc.subject	ACCOUNTING STANDARDS
dc.subject	ADMINISTRATIVE COSTS
dc.subject	ASSET MANAGEMENT
dc.subject	ASSET MANAGEMENT COMPANIES
dc.subject	ASSET VALUE
dc.subject	AUDITING
dc.subject	AUDITS
dc.subject	AUTONOMY
dc.subject	BAD BANK
dc.subject	BALANCE SHEET
dc.subject	BALANCE SHEETS
dc.subject	BANK ASSETS
dc.subject	BANK CAPITALIZATION
dc.subject	BANK DEPOSITS
dc.subject	BANK FAILURE
dc.subject	BANK FAILURES
dc.subject	BANK FOR INTERNATIONAL SETTLEMENTS
dc.subject	BANK LENDING
dc.subject	BANK MANAGEMENT
dc.subject	BANK RESTRUCTURING
dc.subject	BANK SUPERVISION
dc.subject	BANKING CRISES
dc.subject	BANKING INDUSTRY
dc.subject	BANKING INSTITUTIONS
dc.subject	BANKING LAW
dc.subject	BANKING PRACTICES
dc.subject	BANKING SERVICES
dc.subject	BANKING SUPERVISION
dc.subject	BANKING SYSTEM
dc.subject	BANKRUPTCY
dc.subject	BANKS
dc.subject	BEST PRACTICE
dc.subject	BEST PRACTICES
dc.subject	BONDS
dc.subject	BUYER
dc.subject	BUYERS
dc.subject	CAPITAL ADEQUACY
dc.subject	CAPITAL ADEQUACY RATIOS
dc.subject	CAPITAL INJECTIONS
dc.subject	CAPITAL REQUIREMENT
dc.subject	CAPITAL REQUIREMENTS
dc.subject	CAPITAL STOCK
dc.subject	CASH FLOWS
dc.subject	CENTRAL BANK
dc.subject	CIVIL LAW
dc.subject	CLAIMANTS
dc.subject	COMMERCIAL PAPER
dc.subject	CONNECTED LENDING
dc.subject	CONTINGENCIES
dc.subject	CONTINGENCY
dc.subject	CONTINGENCY PLAN
dc.subject	CONTRIBUTIONS
dc.subject	CREDIBILITY
dc.subject	CREDIT CARD
dc.subject	CREDIT CARD COMPANY
dc.subject	CREDIT RATINGS
dc.subject	CREDITORS
dc.subject	CREDITS
dc.subject	CROSS-SUBSIDIES
dc.subject	CURRENT ACCOUNT
dc.subject	DEBT INSTRUMENTS
dc.subject	DEBTORS
dc.subject	DEMAND DEPOSITS
dc.subject	DEPOSIT
dc.subject	DEPOSIT INSURANCE
dc.subject	DEPOSIT INSURANCE SCHEMES
dc.subject	DEPOSITOR
dc.subject	DEPOSITORS
dc.subject	DEPOSITS
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT BANK
dc.subject	DISCLOSURE OF INFORMATION
dc.subject	DISCLOSURE STANDARDS
dc.subject	DIVERSIFICATION
dc.subject	DOMESTIC BANK
dc.subject	DUE DILIGENCE
dc.subject	EARLY INTERVENTION
dc.subject	ECONOMIC COSTS
dc.subject	ECONOMIC CRISIS
dc.subject	ECONOMIC MANAGEMENT
dc.subject	ELIGIBILITY CRITERIA
dc.subject	EMPLOYERS
dc.subject	EQUITY SWAPS
dc.subject	EXCLUSION
dc.subject	EXPENDITURES
dc.subject	EXTERNAL AUDITORS
dc.subject	EXTERNAL CREDIT RATINGS
dc.subject	EXTERNALITIES
dc.subject	FEDERAL BANKS
dc.subject	FINANCES
dc.subject	FINANCIAL ASSISTANCE
dc.subject	FINANCIAL COST
dc.subject	FINANCIAL COSTS
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL INSTITUTION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL LOSSES
dc.subject	FINANCIAL PERFORMANCE
dc.subject	FINANCIAL POSITION
dc.subject	FINANCIAL RESOURCES
dc.subject	FINANCIAL RESTRUCTURING
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL STATEMENTS
dc.subject	FINANCIAL SYSTEM
dc.subject	FINANCIAL SYSTEMS
dc.subject	GAMBLING
dc.subject	GLOBALIZATION
dc.subject	GOOD BANK
dc.subject	GOVERNMENT FINANCES
dc.subject	GROUP DEPOSITS
dc.subject	GROUP OF BANKS
dc.subject	GUARANTEE FUND
dc.subject	HUMAN RESOURCES
dc.subject	INCOME
dc.subject	INFORMATION ASYMMETRIES
dc.subject	INFORMATION REQUIREMENTS
dc.subject	INFORMATION SHARING
dc.subject	INSURANCE AGENCY
dc.subject	INSURED DEPOSITS
dc.subject	INTERNATIONAL ACCOUNTING STANDARDS
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL BANKS
dc.subject	INVENTORY
dc.subject	JUDICIAL SYSTEM
dc.subject	LABOR COSTS
dc.subject	LARGE BANK
dc.subject	LARGE BANKS
dc.subject	LAWS
dc.subject	LEGAL AUTHORITY
dc.subject	LEGAL FRAMEWORK
dc.subject	LEGAL FRAMEWORKS
dc.subject	LEGAL PROTECTION
dc.subject	LEGISLATION
dc.subject	LIABILITY
dc.subject	LIQUIDATION
dc.subject	LIQUIDATION VALUE
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY ASSISTANCE
dc.subject	LIQUIDITY POSITION
dc.subject	LOAN
dc.subject	LOCAL MEDIA
dc.subject	MAJOR BANKS
dc.subject	MANDATES
dc.subject	MARKET DISCIPLINE
dc.subject	MARKET ENVIRONMENT
dc.subject	MARKET PARTICIPANTS
dc.subject	MAXIMUM CONTRIBUTION
dc.subject	MONETARY FUND
dc.subject	MORAL HAZARD
dc.subject	MORAL SUASION
dc.subject	NET ASSET
dc.subject	NET LOSSES
dc.subject	NET VALUE
dc.subject	NET WORTH
dc.subject	ORIGINAL ASSETS
dc.subject	OTHER ASSETS
dc.subject	PAYMENT SERVICES
dc.subject	PAYMENT SYSTEM
dc.subject	PENSION
dc.subject	PENSION ACCOUNTS
dc.subject	PORTFOLIO
dc.subject	PRACTICAL KNOWLEDGE
dc.subject	PRACTICAL TIPS
dc.subject	PRESENT VALUE
dc.subject	PRESS RELEASES
dc.subject	PRINCIPAL-AGENT PROBLEM
dc.subject	PRIVATE BANKS
dc.subject	PRIVATE FUNDS
dc.subject	PRIVATE INVESTMENT
dc.subject	PRIVATE INVESTMENTS
dc.subject	PRIVATE INVESTORS
dc.subject	PROBABILITY
dc.subject	PROFITABILITY
dc.subject	PUBLIC AGENCIES
dc.subject	PUBLIC FUNDS
dc.subject	PURCHASES
dc.subject	QUALITY OF ASSETS
dc.subject	QUESTIONNAIRES
dc.subject	RECAPITALIZATION
dc.subject	REGULATORY FRAMEWORK
dc.subject	REORGANIZATION
dc.subject	RESERVE
dc.subject	RESERVE REQUIREMENT
dc.subject	RESERVES
dc.subject	RESPONSIBILITIES
dc.subject	RETURN
dc.subject	RIGHTS OF CREDITORS
dc.subject	RISK ASSESSMENT
dc.subject	RISK DIVERSIFICATION
dc.subject	RISK MANAGEMENT
dc.subject	RISK OF LOSS
dc.subject	RISK PROFILE
dc.subject	RISK TAKING
dc.subject	SALE
dc.subject	SALES
dc.subject	SEIZURE
dc.subject	SENIOR
dc.subject	SENIOR BONDS
dc.subject	SHAREHOLDER
dc.subject	SHAREHOLDERS
dc.subject	SMALL BANKS
dc.subject	SOLE PROVIDER
dc.subject	SOLVENCY
dc.subject	STAKEHOLDERS
dc.subject	START-UP
dc.subject	STOCKS
dc.subject	SUBORDINATED DEBT
dc.subject	SUPERVISORY AUTHORITIES
dc.subject	SUPERVISORY AUTHORITY
dc.subject	SUPERVISORY POWERS
dc.subject	SUPPLY OF CREDIT
dc.subject	TERMINATION
dc.subject	TIME DEPOSITS
dc.subject	TOTAL COST
dc.subject	TOTAL COSTS
dc.subject	TRANSACTION
dc.subject	TRANSPARENCY
dc.subject	TRUST FUND
dc.subject	TRUST FUNDS
dc.subject	TRUSTEES
dc.subject	TYPE OF PURCHASE
dc.subject	UNEMPLOYMENT
dc.subject	VALUABLE
dc.subject	VALUE OF ASSETS
dc.subject	WITHDRAWAL
dc.subject	WORTH
dc.title	Practical Guidelines for Effective Bank Resolution	en
dspace.entity.type	Publication
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2007/11/8667097/practical-guidelines-effective-bank-resolution
okr.globalpractice	Finance and Markets
okr.identifier.doi	10.1596/1813-9450-4389
okr.identifier.externaldocumentum	000158349_20071109135141
okr.identifier.internaldocumentum	8667097
okr.identifier.report	WPS4389
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/11/09/000158349_20071109135141/Rendered/PDF/wps4389.pdf	en
okr.topic	Finance and Financial Sector Development :: Access to Finance
okr.topic	Banks and Banking Reform
okr.topic	Finance and Financial Sector Development :: Bankruptcy and Resolution of Financial Distress
okr.topic	Finance and Financial Sector Development :: Debt Markets
okr.unit	Development Research Group (DECRG)
okr.volume	1 of 1
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87