Bolzico, JavierMascaró, YiraGranata, Paola2012-06-082012-06-082007-11https://hdl.handle.net/10986/7548This 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.CC BY 3.0 IGOACCESS TO FINANCEACCESS TO INFORMATIONACCOUNT HOLDERSACCOUNTABILITYACCOUNTINGACCOUNTING POLICIESACCOUNTING STANDARDACCOUNTING STANDARDSADMINISTRATIVE COSTSASSET MANAGEMENTASSET MANAGEMENT COMPANIESASSET VALUEAUDITINGAUDITSAUTONOMYBAD BANKBALANCE SHEETBALANCE SHEETSBANK ASSETSBANK CAPITALIZATIONBANK DEPOSITSBANK FAILUREBANK FAILURESBANK FOR INTERNATIONAL SETTLEMENTSBANK LENDINGBANK MANAGEMENTBANK RESTRUCTURINGBANK SUPERVISIONBANKING CRISESBANKING INDUSTRYBANKING INSTITUTIONSBANKING LAWBANKING PRACTICESBANKING SERVICESBANKING SUPERVISIONBANKING SYSTEMBANKRUPTCYBANKSBEST PRACTICEBEST PRACTICESBONDSBUYERBUYERSCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL INJECTIONSCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITAL STOCKCASH FLOWSCENTRAL BANKCIVIL LAWCLAIMANTSCOMMERCIAL PAPERCONNECTED LENDINGCONTINGENCIESCONTINGENCYCONTINGENCY PLANCONTRIBUTIONSCREDIBILITYCREDIT CARDCREDIT CARD COMPANYCREDIT RATINGSCREDITORSCREDITSCROSS-SUBSIDIESCURRENT ACCOUNTDEBT INSTRUMENTSDEBTORSDEMAND DEPOSITSDEPOSITDEPOSIT INSURANCEDEPOSIT INSURANCE SCHEMESDEPOSITORDEPOSITORSDEPOSITSDEVELOPING COUNTRIESDEVELOPMENT BANKDISCLOSURE OF INFORMATIONDISCLOSURE STANDARDSDIVERSIFICATIONDOMESTIC BANKDUE DILIGENCEEARLY INTERVENTIONECONOMIC COSTSECONOMIC CRISISECONOMIC MANAGEMENTELIGIBILITY CRITERIAEMPLOYERSEQUITY SWAPSEXCLUSIONEXPENDITURESEXTERNAL AUDITORSEXTERNAL CREDIT RATINGSEXTERNALITIESFEDERAL BANKSFINANCESFINANCIAL ASSISTANCEFINANCIAL COSTFINANCIAL COSTSFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL LOSSESFINANCIAL PERFORMANCEFINANCIAL POSITIONFINANCIAL RESOURCESFINANCIAL RESTRUCTURINGFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCIAL SYSTEMSGAMBLINGGLOBALIZATIONGOOD BANKGOVERNMENT FINANCESGROUP DEPOSITSGROUP OF BANKSGUARANTEE FUNDHUMAN RESOURCESINCOMEINFORMATION ASYMMETRIESINFORMATION REQUIREMENTSINFORMATION SHARINGINSURANCE AGENCYINSURED DEPOSITSINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL BANKINTERNATIONAL BANKSINVENTORYJUDICIAL SYSTEMLABOR COSTSLARGE BANKLARGE BANKSLAWSLEGAL AUTHORITYLEGAL FRAMEWORKLEGAL FRAMEWORKSLEGAL PROTECTIONLEGISLATIONLIABILITYLIQUIDATIONLIQUIDATION VALUELIQUIDITYLIQUIDITY ASSISTANCELIQUIDITY POSITIONLOANLOCAL MEDIAMAJOR BANKSMANDATESMARKET DISCIPLINEMARKET ENVIRONMENTMARKET PARTICIPANTSMAXIMUM CONTRIBUTIONMONETARY FUNDMORAL HAZARDMORAL SUASIONNET ASSETNET LOSSESNET VALUENET WORTHORIGINAL ASSETSOTHER ASSETSPAYMENT SERVICESPAYMENT SYSTEMPENSIONPENSION ACCOUNTSPORTFOLIOPRACTICAL KNOWLEDGEPRACTICAL TIPSPRESENT VALUEPRESS RELEASESPRINCIPAL-AGENT PROBLEMPRIVATE BANKSPRIVATE FUNDSPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE INVESTORSPROBABILITYPROFITABILITYPUBLIC AGENCIESPUBLIC FUNDSPURCHASESQUALITY OF ASSETSQUESTIONNAIRESRECAPITALIZATIONREGULATORY FRAMEWORKREORGANIZATIONRESERVERESERVE REQUIREMENTRESERVESRESPONSIBILITIESRETURNRIGHTS OF CREDITORSRISK ASSESSMENTRISK DIVERSIFICATIONRISK MANAGEMENTRISK OF LOSSRISK PROFILERISK TAKINGSALESALESSEIZURESENIORSENIOR BONDSSHAREHOLDERSHAREHOLDERSSMALL BANKSSOLE PROVIDERSOLVENCYSTAKEHOLDERSSTART-UPSTOCKSSUBORDINATED DEBTSUPERVISORY AUTHORITIESSUPERVISORY AUTHORITYSUPERVISORY POWERSSUPPLY OF CREDITTERMINATIONTIME DEPOSITSTOTAL COSTTOTAL COSTSTRANSACTIONTRANSPARENCYTRUST FUNDTRUST FUNDSTRUSTEESTYPE OF PURCHASEUNEMPLOYMENTVALUABLEVALUE OF ASSETSWITHDRAWALWORTHWorld Bank10.1596/1813-9450-4389