Two Approaches to Resolving Nonperforming Assets During Financial Crises

February 1, 2000

Preview Citation

Format: Chicago

David Woo. Two Approaches to Resolving Nonperforming Assets During Financial Crises, (USA: International Monetary Fund, 2000) accessed December 3, 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

The unprecedented rise in nonperforming assets during the recent Asian financial crisis severely tested the limit and capacity of the existing asset management infrastructure, leading policymakers to consider new approaches to resolve them. This paper examines two such approaches—the creation of asset management companies and the development of out-of-court centralized corporate debt workout frameworks—that came to define the core asset management setting in countries most seriously affected by the crisis. In addition to investigating their respective role, and evaluating their strengths and weaknesses, this paper seeks to benchmark some best practices in their design.

Subject: Asset and liability management, Asset management, Asset management companies, Banking, Distressed assets, Financial crises, Financial institutions, Financial sector policy and analysis, Loans

Keywords: AMC board, AMC management, AMC subsidiary, Asset management, Asset management companies, Asset resolution process, Debt workout, Distressed assets, East Asia, Foreign exchange, Lead bank, Loans, Market value, Nonperforming assets, Purchase assets, Roles of asset management companies, WP

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/033
Stock No:

WPIEA0332000
ISBN:

9781451845174
ISSN:

1018-5941

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