IMF Working Papers

Market-Based Policy Instruments for Systemic Bank Restructuring

By Tamim Bayoumi, Paul R Masson

August 1, 1998

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Tamim Bayoumi, and Paul R Masson. Market-Based Policy Instruments for Systemic Bank Restructuring, (USA: International Monetary Fund, 1998) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Since the early 1980s, well over 100 countries have experienced systemic bank insolvencies. An important innovation among the resulting policies for reestablishing bank soundness has been the reliance on market-based instruments and policies, in contrast to the largely non-market-oriented approach taken in the 1930s during the last big wave of banking crises. This paper surveys and assesses market-based policy instruments employed to overcome systemic bank problems. Considerations regarding the design and mix of instruments as well as cost-sharing arrangements are shown to be key aspects of effective bank restructuring. Selected country examples are used to illustrate best practices.

Subject: Asset and liability management, Asset management companies, Bank resolution, Banking, Commercial banks, Deposit insurance, Financial crises, Financial institutions, Financial instruments, Loans

Keywords: Asset management companies, Bank, Bank asset quality, Bank closure, Bank resolution, Bank-client relation, Banking Crisis, Break, Central Banking, Collector bank, Commercial banks, Credit-Anstalt, Financial Sector Policy, Loan, Loan workout, Loans, Market, Restructuring, Restructuring strategy, State bank, WP

Publication Details

  • Pages:

    25

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1998/113

  • Stock No:

    WPIEA1131998

  • ISBN:

    9781451944235

  • ISSN:

    1018-5941

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