Issues in the Establishment of Asset Management Companies
IMF Policy Discussion Papers, May 1, 2004
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- Issues in the Establishment of Asset Management Companies
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Bibliographic details
- Authors: Stefan N Ingves, Steven A. Seelig, Dong He
- Published: May 1, 2004
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451974225.003
Summary
- The paper discusses the role of asset management companies (AMCs) in facilitating bank restructuring and specifies policy lessons learned from international experience.
- The paper concludes that there is no single optimal solution but a combination of strategies that will vary from bank to bank and country to country.
- Common factors that contribute to the success of an AMC include the legal environment, leadership, independence, incentives, and commercial orientation.
Major findings and themes
- AMCs can facilitate bank restructuring by managing distressed assets and supporting asset recovery and disposition strategies.
- Success factors identified across jurisdictions include:
- Legal environment
- Leadership
- Independence
- Incentives
- Commercial orientation
- There is no universally optimal AMC model; design and strategy should be tailored to specific bank and country circumstances.
Policy lessons and recommendations
- Adopt a combination of strategies adapted to the specific bank and country context rather than a one-size-fits-all solution.
- Ensure the AMC operates within a supportive legal environment.
- Establish clear leadership and governance arrangements to safeguard independence and drive commercial orientation.
- Design incentive structures aligned with asset-recovery and disposition objectives.
Subjects and keywords
- Subject: Asset and liability management, Asset management, Asset management companies, Asset valuation, Bank resolution, Banking, Distressed assets, Financial crises, Financial sector policy and analysis
- Keywords: AMC face, AMC management, AMC monopoly, AMC's assets, Asia and Pacific, asset, asset disposition strategy, asset management, Asset management companies, asset portfolio, asset recovery, Asset valuation, bank, Bank resolution, bank restructuring, company, corporate restructuring, Distressed assets, functioning bank, In Private AMCs, loan, loan restructuring, PDP, transactions of the AMC
Source: IMF Policy Discussion Paper "Issues in the Establishment of Asset Management Companies" (Policy Discussion Paper No. 2004/003).