World Bank2013-03-212013-03-212012-03-20https://hdl.handle.net/10986/12817The process of bank resolution, or the procedure for handling insolvency of banks using a range of tools, including alternatives to standard bankruptcy processes, has gained major traction since the experience of the 2008-09 financial crisis. In this context, this report reviews models for bank resolution that provide increased flexibility and describes several of the supervisory, legal and instrumental tools that can be used under modernized bank resolution procedures. As well, it looks at the recent European Commission proposals on this matter which take into account international best practices experiences. It also highlights areas of reform and areas where further regulatory considerations and priorities should be considered. The report reviews the bank resolution regimes of a group of European countries as well as those of two non-EU countries to highlight advantages as well as gaps in the legal and regulatory frameworks. This report surveys the banking and deposit insurance laws of six European countries : Poland, the Czech Republic, Germany, Spain, the U.K., and Croatia. Remedial enforcement measures for distressed banks and for bank resolution reveals that adoption of the EU legislative proposals, as described in the EC Communication, would require significant changes in legislation in four of the six countries. The report also reviews the laws of Canada and the U.S. for comparison, as implementation of their laws has already utilized several of the resolution instruments and mechanisms being considered.en-USCC BY 3.0 IGOACCESS TO DEPOSITSACCOUNTINGACCOUNTING PERIODALLOCATION OF ASSETSASSET MANAGEMENTASSET VALUEASSETSASSUMPTION OF LIABILITIESAUTONOMYBAD ASSETSBALANCE SHEETBALANCE SHEETSBANK DEBTBANK FAILUREBANK FAILURESBANK INSOLVENCY FRAMEWORKBANK INSOLVENCY LAWBANK LIABILITIESBANK OWNERSBANKING INDUSTRYBANKING LAWBANKING LAWSBANKING SECTORBANKING SERVICESBANKING SUPERVISIONBANKRUPTCYBANKRUPTCY LAWBANKRUPTCY LAWSBANKRUPTCY PROCEEDINGSBANKRUPTCY PROCESSESBANKSCAPITAL ADEQUACYCAPITAL ADEQUACY REQUIREMENTSCAPITAL INJECTIONSCAPITAL REQUIREMENTSCENTRAL BANKSCLAIMANTSCOLLATERALCOLLATERALIZATIONCOLLECTION EFFORTSCOMPANY LAWCOMPARATIVE LAWCONTRACTUAL SAVINGSCONTRACTUAL SAVINGS INSTITUTIONSCONVERSION OF DEBTCONVERSION OF DEBT TO EQUITYCORPORATE GOVERNANCECORPORATE INSOLVENCYCORPORATE INSOLVENCY FRAMEWORKCORPORATE INSOLVENCY LAWCORPORATE INSOLVENCY PROCEEDINGCREDIBILITYCREDIT INSTITUTIONCREDIT INSTITUTIONSCREDIT UNIONSCREDITORCREDITOR CLAIMSCROSS-BORDER INSOLVENCYDEBTDEBT HOLDERSDEBT INSTRUMENTSDEBT OBLIGATIONSDEPENDENTDEPOSITDEPOSIT GUARANTEEDEPOSIT INSURANCEDEPOSIT INSURANCE AGENCIESDEPOSIT INSURANCE AGENCYDEPOSIT INSURANCE FUNDDEPOSIT INSURANCE SCHEMEDEPOSIT INSURERDEPOSITORSDEPOSITSDERIVATIVEDISCRETIONARY POWERSDISPOSITIONDISTRESSED BANKSECONOMIC CONDITIONSEQUITY INTERESTEQUITY RATIOSFAIR VALUATIONFINAL LIQUIDATIONFINANCIAL ASSETSFINANCIAL AUTHORITIESFINANCIAL CRISISFINANCIAL DISTRESSFINANCIAL INFRASTRUCTUREFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL POSITIONFINANCIAL REGULATIONFINANCIAL REORGANIZATIONFINANCIAL RESTRUCTURINGFINANCIAL RISKSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL SYSTEMSFRAMEWORK FOR BANK INSOLVENCYGOING CONCERNGOING-CONCERNGUARANTEE FUNDSINSOLVENCIESINSOLVENCYINSOLVENCY LAWINSOLVENCY LAWSINSOLVENCY PRACTITIONERSINSOLVENCY PROBLEMSINSOLVENCY PROCEDURESINSOLVENCY PROCEEDINGINSOLVENCY PROCEEDINGSINSOLVENCY REGIMEINSOLVENCY RISKSINSOLVENTINSOLVENT BANKINSURANCE COMPANIESINSURANCE COMPANYINSURED DEPOSITSINTEREST OF DEPOSITORSINTERESTS OF CREDITORSJUDGESJUDGMENTJUDICIAL REVIEWJURISDICTIONJURISDICTIONSLAST RESORTLAWSLEGAL FRAMEWORKLEGAL POWERSLEGAL PROVISIONSLEGAL REFORMSLEGISLATIONLEGISLATIVE FRAMEWORKSLIABILITYLIQUIDATIONLIQUIDATION OF ASSETSLIQUIDITYLOANLOAN CLASSIFICATIONLOAN PORTFOLIOLOAN PORTFOLIOSLOAN RECOVERIESLOSSES TO DEPOSITORSMANDATEMARKET DISCIPLINEMARKET MECHANISMSMARKET PARTICIPANTSMERGERMINISTRIES OF FINANCEMODERN BANKRUPTCYMORAL HAZARDMORTGAGEMORTGAGE DEBTNET LOSSNET LOSSESNET VALUENEW BANKING ACTOFF BALANCE SHEETORDERLY LIQUIDATIONSORDINARY BANKRUPTCYPARTIAL TRANSFERPAYMENT OF CLAIMSPAYMENTS SYSTEMPENALTIESPIECEMEAL LIQUIDATIONPRESENT VALUEPRIVATE INTERNATIONAL LAWPROBLEM BANKSPROMPT PAYMENTPROPERTY RIGHTSPROSPECTIVE BIDDERSPRUDENTIAL REQUIREMENTSPUBLIC POLICYPURCHASE AND ASSUMPTION TRANSACTIONRECAPITALIZATIONREGULATORY FORBEARANCEREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREGULATORY INSOLVENCYREHABILITATION PLANREHABILITATION PLANSREHABILITATION PROCEEDINGSREMEDIESREMEDYREORGANIZATIONREORGANIZATION PROCEEDINGSRESOLUTION MECHANISMSRISK MANAGEMENTRISK TAKINGRULE OF LAWSALARYSAVINGSSHAREHOLDER RIGHTSSOLVENTSOLVENT BANKSSUBSIDIARIESSUPERVISORY AGENCIESSUPERVISORY AUTHORITIESSUPERVISORY POWERSTECHNICAL ASSISTANCETRANSFER OF ASSETSTREATMENT OF CREDITORSUNDERLYING ASSETUNDERLYING ASSETSUNSECURED CREDITORSVALUE OF ASSETSWINDING UPWRITE OFFSWorld Bank10.1596/12817