Working Paper

The Use of Asset Management Companies in the Resolution of Banking Crises : Cross-Country Experience

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Klingebiel, Daniela
dc.date.accessioned
2015-07-29T15:47:44Z
dc.date.available
2015-07-29T15:47:44Z
dc.date.issued
2000-02
dc.date.lastModified
2021-04-23T14:04:07Z
dc.description.abstract
Asset management companies have been used to address the overhang of bad debt in the financial system. There are two main types of asset management company: those set up to expedite corporate restructuring and those established for rapid disposal of assets. A review of seven asset management companies reveals a mixed record. In two of three cases, asset management companies for corporate restructuring did not achieve their narrow goal of expediting bank or corporate restructuring, suggesting that they are not good vehicles for expediting corporate restructuring. Only a Swedish asset management company successfully managed its portfolio, acting sometimes as lead agent in restructuring - and helped by the fact that the assets acquired had mostly to do with real estate, not manufacturing, which is harder to restructure, and represented a small fraction of the banking systems assets, which made it easier for the company to remain independent of political pressures and to sell assets back to the private sector. Asset management companies used to dispose of assets rapidly fared somewhat better. Two of four agencies (in Spain and the United States) achieved their objectives, suggesting that asset management companies can be used effectively for narrowly defined purposes of resolving insolvent and inviable financial institutions and selling off their assets. Achieving these objectives required an easily liquefiable asset - real estate - mostly professional management, political independence, adequate bankruptcy and foreclosure laws, appropriate funding, skilled resources, good information and management systems, and transparent operations and processes. The other two agencies (in Mexico and the Philippines) were doomed from the start, as governments transferred to them politically motivated loans or fraudulent assets, which were difficult for a government agency susceptible to political pressure and lacking independence to resolve or sell off.
en
dc.identifier
http://documents.worldbank.org/curated/en/2000/02/438381/use-asset-management-companies-resolution-banking-crises-cross-country-experience
dc.identifier.uri
http://hdl.handle.net/10986/22336
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 2284
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
ACCOUNTING STANDARDS
dc.subject
ASSET DISPOSITION AGENCIES
dc.subject
ASSET MANAGEMENT
dc.subject
ASSET MANAGEMENT COMPANIES
dc.subject
ASSET PRICES
dc.subject
ASSET RECOVERY
dc.subject
ASSET SALES
dc.subject
ASSET TRANSFERS
dc.subject
ASSET VALUE
dc.subject
AUCTION
dc.subject
BAD DEBT
dc.subject
BALANCE SHEET
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BALANCE SHEETS
dc.subject
BANK ASSETS
dc.subject
BANK RECAPITALIZATION
dc.subject
BANK RESTRUCTURING
dc.subject
BANK RUNS
dc.subject
BANKING CRISES
dc.subject
BANKING CRISIS
dc.subject
BANKING CRISIS MANAGEMENT
dc.subject
BANKING DISTRESS
dc.subject
BANKING INDUSTRY
dc.subject
BANKING SECTOR
dc.subject
BANKING SYSTEM
dc.subject
BANKING SYSTEMS
dc.subject
BANKRUPTCY
dc.subject
BANKS
dc.subject
BOOK VALUE
dc.subject
CAPITAL BASE
dc.subject
CENTRAL BANK
dc.subject
COLLATERAL
dc.subject
COMMERCIAL BANKS
dc.subject
COMPANY MANAGEMENT
dc.subject
CONSOLIDATED SUPERVISION
dc.subject
CONSOLIDATION
dc.subject
CORPORATE RESTRUCTURING
dc.subject
CREDIT DISCIPLINE
dc.subject
CROSS COUNTRY EXPERIENCE
dc.subject
CROSS-COUNTRY EXPERIENCE
dc.subject
CURRENT PRICES
dc.subject
DEBT
dc.subject
DEBT RELIEF
dc.subject
DEBT RESTRUCTURING
dc.subject
DEPOSIT TRANSFERS
dc.subject
DEPOSITORS
dc.subject
DISCLOSURE
dc.subject
DISPOSITION OF IMPAIRED ASSETS
dc.subject
FAILED BANKS
dc.subject
FINANCIAL CRISES
dc.subject
FINANCIAL DISTRESS
dc.subject
FINANCIAL INSTITUTIONS
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FINANCIAL INTERMEDIARIES
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FINANCIAL INTERMEDIATION
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FINANCIAL MANAGEMENT
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FORECLOSURE LAWS
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FRAUDULENT ASSETS
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FUTURE VALUE
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IMPAIRED ASSETS
dc.subject
LAWS
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LEGAL FRAMEWORK
dc.subject
LEVEL PLAYING FIELD
dc.subject
LIQUIDATION
dc.subject
MARKET VALUE
dc.subject
MONEY CENTER BANKS
dc.subject
MORTGAGE LOANS
dc.subject
POLITICAL INTERFERENCE
dc.subject
PORTFOLIO
dc.subject
PRIVATIZATION
dc.subject
PROBLEM LOANS
dc.subject
PURCHASE ASSUMPTION TRANSACTIONS
dc.subject
REAL ESTATE LOANS
dc.subject
REAL SECTOR
dc.subject
REGULATORY FRAMEWORK
dc.subject
RESTRUCTURING AGENCIES
dc.subject
SAVINGS
dc.subject
SECURITIES
dc.subject
SECURITIZATION
dc.subject
SMALL BANKS
dc.subject
SOLVENCY
dc.subject
SUBSIDIARIES
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SYSTEMIC BANK RESTRUCTURING
dc.subject
SYSTEMIC BANKING CRISES
dc.subject
SYSTEMIC BANKING DISTRESS
dc.subject
TRANSPARENCY
dc.title
The Use of Asset Management Companies in the Resolution of Banking Crises
en
dc.title.subtitle
Cross-Country Experience
en
dc.type
Working Paper
en
okr.date.disclosure
2010-07-01
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2000/02/438381/use-asset-management-companies-resolution-banking-crises-cross-country-experience
okr.globalpractice
Finance and Markets
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-2284
okr.identifier.externaldocumentum
000094946_00021806025471
okr.identifier.internaldocumentum
438381
okr.identifier.report
WPS2284
okr.language.supported
en
okr.pdfurl
/IB/2000/03/03/000094946_00021806025471/additional/128528322_20041117153059.pdf
en
okr.region.administrative
East Asia and Pacific
okr.region.administrative
Europe and Central Asia
okr.region.country
Mexico
okr.region.country
Philippines
okr.region.country
Spain
okr.region.country
Sweden
okr.region.country
United States
okr.sector
Other Finance
okr.sector
Finance
okr.topic
Finance and Financial Sector Development :: Payment Systems & Infrastructure
okr.topic
Finance and Financial Sector Development :: Financial Intermediation
okr.topic
Urban Development :: Municipal Financial Management
okr.topic
Conflict and Development :: International Terrorism & Counterterrorism
okr.topic
Finance and Financial Sector Development :: Banks & Banking Reform
okr.topic
Finance and Financial Sector Development :: Financial Crisis Management & Restructuring
okr.unit
Financial Sector Strategy and Policy Group

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