Bank Resolution Policy and the Organization of Bank Insolvency Proceedings

Christos Hadjiemmanuil

Chapter 11 in Who Pays for Bank Insolvency?, 2004, pp 272-330 from Palgrave Macmillan

Abstract: Abstract How should a country deal with the financial failure of banking institutions? What policy objectives should it pursue, and by what means? The answers to these questions do not merely determine the ex-post resolution of particular failed banks; they also affect the ex-ante incentive structure of market participants generally (bank owners and managers, depositors, other creditors and so on). In this manner, a country’s bank resolution policies exercise a subtle but critical influence on the incidence of bank insolvency and, in consequence, on the overall stability of the financial system. The costs of inappropriate and confused bank resolution policies are extremely high for a national economy. It is, accordingly, evident that the various resolution-related decisions should be guided by clear and consistent principles. Yet, the theoretical understanding of the issues is still limited and common international approaches have not so far emerged.

Keywords: Deposit Insurance; Credit Institution; Supervisory Authority; Insolvency Proceeding; Financial Service Authority (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-52391-3_12

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230523913

DOI: 10.1057/9780230523913_12

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().