Publication: Strengthening Safeguards in Bank Resolution Frameworks in Emerging and Developing Countries
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2020-05
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2020-05
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This paper takes a closer look at why safeguards are needed in bank resolution frameworks and how the principles included in a subset of the key attributes are expected to protect third party rights. Through a review of a set of issues encountered across a sample of 12 emerging and developing countries from 6 regions, the authors seek to highlight areas where safeguards may not easily be implemented, highlighting the potential need for legislative amendments, or a thorough review of administrative procedures, and or significant capacity development of the judicial profession.
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“Jansen, Barend; Rawlins, Marlon Rolston; Zanforlin, Luisa. 2020. Strengthening Safeguards in Bank Resolution Frameworks in Emerging and Developing Countries. Finance, Competitiveness and Innovation Insight;. © World Bank. http://hdl.handle.net/10986/33827 License: CC BY 3.0 IGO.”
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Publication Strengthening Safeguards in Bank Resolution Frameworks in Emerging and Developing Countries(World Bank, Washington, DC, 2020-05-05)The paper will focus on the resolution frameworks of a sample of 12 countries taken from 6 regions. The review of the sample countries is used to analyze issues that may be relevant for other countries and to discuss potential challenges faced in implementing effective safeguards. The remainder of the paper is organized as follows: Section two discusses the rationale for significant powers given to the resolution authority under the key attributes and the far-reaching implications of these powers. Section three offers a brief overview of the safeguards that are incorporated in the key attributes, describes the rationale and intent of each safeguard and how to implement them to support an efficient bank resolution framework. 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