Financial Institutions In Distress

Author : Ronald Davis,Stephan Madaus,Monica Marcucci,Irit Mevorach,Riz Mokal,Barbara Romaine,Janis Sarra,Ignacio Tirado
Publisher : Oxford University Press
Page : 467 pages
File Size : 41,5 Mb
Release : 2023-08-25
Category : Law
ISBN : 9780192882530

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Financial Institutions in Distress by Ronald Davis,Stephan Madaus,Monica Marcucci,Irit Mevorach,Riz Mokal,Barbara Romaine,Janis Sarra,Ignacio Tirado Pdf

Political boundaries are often porous to finance, financial intermediation, and financial distress. Yet they are highly impervious to financial regulation. When inhabitants of a country suffering a deficit of purchasing power are able to access and deploy funds flowing in from a country with a surfeit of such power, the inhabitants of both countries may benefit. They may also benefit when institutions undertaking such cross-border financial intermediation experience economies of scale and are able to innovate and to offer funds and services at lower costs. Inevitably, however, at least some such institutions will sometimes act imprudently, some of the projects in which such funds are deployed may be unwise, and other such projects can suffer from unforeseen circumstances. As a result of such factors, a financial institution may suffer distress in one country, and may then transmit such distress to other countries in which it operates. The efficacy of any response to such cross-border transmission of distress may turn on the response being given due effect in both (or all) the territories in which the distressed financial institution operates. This situation creates a conundrum for policymakers, legislators, and regulators who wish to enable those subject to their jurisdiction to access the benefits of cross-border financial intermediation, yet cannot make rules and regulations that would have effect outside that jurisdiction. This book explores this conundrum and offers a response. It does so by drawing on and adding to the literatures on financial intermediation, regulation, and distress, and on existing hard and soft laws and regulations. The book advocates for the creation of a model law that would address the full range of financial institutions, including insurance companies, and that would enable relevant authorities to cooperate with counterparts in advance of the onset of distress and to give appropriate effect in their jurisdiction to measures taken by counterpart authorities in other jurisdictions in which the distressed institution also operates.

Author : Edward I. Altman,Edith Hotchkiss,Wei Wang
Publisher : John Wiley & Sons
Page : 374 pages
File Size : 50,9 Mb
Release : 2019-03-26
Category : Business & Economics
ISBN : 9781119481805

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Corporate Financial Distress, Restructuring, and Bankruptcy by Edward I. Altman,Edith Hotchkiss,Wei Wang Pdf

A comprehensive look at the enormous growth and evolution of distressed debt markets, corporate bankruptcy, and credit risk models This Fourth Edition of the most authoritative finance book on the topic updates and expands its discussion of financial distress and bankruptcy, as well as the related topics dealing with leveraged finance, high-yield, and distressed debt markets. It offers state-of-the-art analysis and research on U.S. and international restructurings, applications of distress prediction models in financial and managerial markets, bankruptcy costs, restructuring outcomes, and more.

Author : Paola Bongini,Stijn Claessens,Giovanni Ferri
Publisher : World Bank Publications
Page : 28 pages
File Size : 55,9 Mb
Release : 2000
Category : Balance Sheet
ISBN : 8210379456XXX

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The Political Economy of Distress in East Asian Financial Institutions by Paola Bongini,Stijn Claessens,Giovanni Ferri Pdf

"In the East Asian crisis, "connections" - with industrial groups or influential families - increased the probability of distress for financial institutions. Connections also made closure more, not less, likely, suggesting that the closure processes themselves were transparent. But larger institutions, although more likely to be distressed, were less likely to be closed, suggesting a "too big to fail" policy"--Cover.

Author : Paul A. Popiel
Publisher : Unknown
Page : 34 pages
File Size : 44,6 Mb
Release : 1988
Category : Bank failures
ISBN : OCLC:31162178

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Financial Institutions in Distress by Paul A. Popiel Pdf

Author : Mr.T. M. C. Asser
Publisher : International Monetary Fund
Page : 200 pages
File Size : 46,8 Mb
Release : 2001-04-18
Category : Business & Economics
ISBN : 1557759723

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Legal Aspects of Regulatory Treatment of Banks in Distress by Mr.T. M. C. Asser Pdf

This book analyzes and compares the laws of selected industrial countries that are representative of the different approaches to the treatment of banks in distress. It addresses only those banking and economic policy issues that are required for a proper understanding of the banking law or the legal strategies, procedures, and practices that have evolved in the treatment of banking problems. The book does not cover international aspects of bank insolvency, but rather has a domestic focus, given that bank regulation and supervision are still largely a national endeavor.

Author : N. Allen Berger
Publisher : World Bank Publications
Page : 52 pages
File Size : 49,6 Mb
Release : 1999
Category : Electronic
ISBN : 9789080401532

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The Ability of Banks to Lend to Informationally Opaque Small Businesses by N. Allen Berger Pdf

August 2001 Large and foreign-owned institutions may have difficulty extending relationship loans to informationally opaque small firms. Bank distress does not appear to affect small business lending, although even small firms may react to bank distress by borrowing from multiple banks. Consolidation of the banking industry is shifting assets into larger institutions that often operate in many nations. Large international financial institutions are geared toward serving large wholesale customers. How does this affect the banking system's ability to lend to informationally opaque small businesses? Berger, Klapper, and Udell test hypotheses about the effects of bank size, foreign ownership, and distress on lending to informationally opaque small firms, using a rich new data set on Argentinean banks, firms, and loans. They also test hypotheses about borrowing from a single bank versus borrowing from several banks. Their results suggest that large and foreign-owned institutions may have difficulty extending relationship loans to opaque small firms, especially if small businesses are delinquent in repaying their loans. Bank distress resulting from lax prudential supervision and regulation appears to have no greater effect on small borrowers than on large borrowers, although even small firms may react to bank distress by borrowing from multiple banks, despite raising borrowing costs and destroying some of the benefits of exclusive lending relationships. This paper--a product of Finance, Development Research Group--is part of a larger effort in the group to study small and medium size firm financing. The authors may be contacted at [email protected], [email protected], or [email protected].

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 34 pages
File Size : 40,7 Mb
Release : 1990-09-01
Category : Business & Economics
ISBN : 9781451954975

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Banks in Distress by International Monetary Fund Pdf

This paper describes the situation of bank distress which developed in Bangladesh since 1983-84. Since the key problem banks are state-owned, there has been no banking crisis, although costs to the economy have been high. Main causes of distress included preferential and directed lending, and administered interest rates. Inadequate supervision and managerial weaknesses were other contributory factors. Macroeconomic trends played a small role only. The authorities have recently taken major corrective measures. The paper calls for determination in the implementation of these measures to swiftly restore financial stability and limit the overall cost of this long-running distress situation.

Author : Charles W. Calomiris,Daniela Klingebiel
Publisher : World Bank Publications
Page : 75 pages
File Size : 54,9 Mb
Release : 2004
Category : Finance, Public
ISBN : 8210379456XXX

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A Taxonomy of Financial Crisis Resolution Mechanisms by Charles W. Calomiris,Daniela Klingebiel Pdf

"The goals of financial restructuring are to reestablish the creditor-debtor relationships on which the economy depends for an efficient allocation of capital, and to accomplish that objective at minimal cost. Costs include direct costs to taxpayers of financial assistance and the indirect costs to the economy that result from misallocations of capital and incentive problems resulting from the restructuring. Calomiris, Klingebiel, and Laeven review cases in which countries used alternative mechanisms to restructure their financial and corporate sectors. Countries typically apply a combination of tools, including decentralized, market-based mechanisms, and government-managed programs. Market-based strategies seek to strengthen the capital base of financial institutions and borrowers to enable them to renegotiate debt and resume new credit supply. Government-led restructuring strategies often include the establishment of an entity to which nonperforming loans are transferred or the government's sale of financial institutions, sometimes to foreign entrants. Market-based mechanisms can, in principle, resolve coordination problems that countries face in the wake of massive debtor and creditor insolvency, with acceptably low direct and indirect costs, particularly when those mechanisms are effective in achieving the desirable objective of selectivity. However, these mechanisms depend for their success on an efficient judicial system, a credible supervisory framework and authority with sufficient enforcement capacity, and a lack of corruption in implementation. Government-managed programs may not seem to depend as much on efficient legal and supervisory institutions for their success, but in fact these approaches, in particular the transfer of assets to government-owned asset management companies, also depend on effective legal, regulatory, and political institutions for their success. Further, a lack of attention to incentive problems when designing specific rules governing financial assistance can aggravate moral hazard problems, unnecessarily raising the costs of resolution. These results suggest that policymakers in emerging market economies with weak institutions should not expect to achieve the same level of success in financial restructuring as other countries, and that they should design resolution mechanisms accordingly. Despite the theoretical attraction of some complex market-based mechanisms, simpler mechanisms that afford quick resolution of outstanding debts that improve financial system competitiveness, and that offer little discretion to governments, are most effective. This paper--a product of the Financial Sector and Operations Policy Department--is part of a larger effort in the department to study the containment and resolution of financial crises"--World Bank web site.

Author : Mr.Martin Cihak,Mr.Tigran Poghosyan
Publisher : International Monetary Fund
Page : 39 pages
File Size : 49,6 Mb
Release : 2009-01-01
Category : Business & Economics
ISBN : 9781451871562

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Distress in European Banks by Mr.Martin Cihak,Mr.Tigran Poghosyan Pdf

The global financial crisis has highlighted the importance of early identification of weak banks: when problems are identified late, solutions are much more costly. Until recently, Europe has seen only a small number of outright bank failures, which made the estimation of early warning models for bank supervision very difficult. This paper presents a unique database of individual bank distress across the European Union from mid-1990s to 2008. Using this data set, we analyze the causes of banking distress in Europe. We identify a set of indicators and thresholds that can help to distinguish sound banks from those vulnerable to financial distress.

Author : Stijn Claessens,Simeon Djankov,Ashoka Mody
Publisher : World Bank Publications
Page : 428 pages
File Size : 55,7 Mb
Release : 2001-01-01
Category : Law
ISBN : 0821349066

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Resolution of Financial Distress by Stijn Claessens,Simeon Djankov,Ashoka Mody Pdf

The understanding of the economic and legal structure of the institutions of bankruptcy has increased considerably over the past decade. This publication describes the state of current knowledge. Containing both theoretical studies and evidence from recent case studies, it shows the possibilities and methods of legal reform and the pitfalls of misguided political action.

Author : Patrick Honohan,Luc Laeven
Publisher : Cambridge University Press
Page : 412 pages
File Size : 54,6 Mb
Release : 2005-09-26
Category : Business & Economics
ISBN : 0521851858

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Systemic Financial Crises by Patrick Honohan,Luc Laeven Pdf

This book analyzes government policies to contain and resolve systemic financial crises.

Author : Charles Adams,Robert E. Litan,Michael Pomerleano
Publisher : Rowman & Littlefield
Page : 514 pages
File Size : 45,8 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 9780815717294

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Managing Financial and Corporate Distress by Charles Adams,Robert E. Litan,Michael Pomerleano Pdf

A World Bank, International Monetary Fund, and Brookings Institution publication More than three years have elapsed since the East Asian financial crisis erupted, threatening economic and financial stability in the region and beyond. Although many of the region's economies have since staged a remarkable turnaround, much additional restructuring and reform is needed. Managing Financial and Corporate Distress: Lessons from Asia, stands out from other works on the East Asian crisis by moving beyond macroeconomic assessments to offer an institutional treatment of the microeconomic aspects of the corporate and bank restructuring. Contributors draw on their practical, hands-on expertise in various aspects of finance to provide complementary perspectives on how best to set in place strong and responsive institutions that might be able to resolve and avoid future crises in other emerging markets.

Author : Suman K. Bery,Valeriano F. García
Publisher : World Bank Publications
Page : 124 pages
File Size : 51,6 Mb
Release : 1997-01-01
Category : Business & Economics
ISBN : 0821338935

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Preventing Banking Sector Distress and Crises in Latin America by Suman K. Bery,Valeriano F. García Pdf

World Bank Technical Paper No. 361. Education has emerged as an essential component of the transition to a market economy in Central and Eastern Europe. Although the countries of the region inherited broadly accessible education systems, the legacies of central planning have constrained the systems from fully adjusting to market economies. This study examines empirical trends in access to and financing of education in nine Central and East European countries by drawing on the findings of a World Bank project that examined the social risks facing people and the policy responses taken by governments since 1989. Chapters address access and participation, the labor market, financing, and staff in the education sector.

Author : Edward I. Altman,Edith Hotchkiss
Publisher : John Wiley & Sons
Page : 314 pages
File Size : 51,6 Mb
Release : 2010-03-11
Category : Business & Economics
ISBN : 9781118046043

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Corporate Financial Distress and Bankruptcy by Edward I. Altman,Edith Hotchkiss Pdf

A comprehensive look at the enormous growth and evolution of distressed debt, corporate bankruptcy, and credit risk default This Third Edition of the most authoritative finance book on the topic updates and expands its discussion of corporate distress and bankruptcy, as well as the related markets dealing with high-yield and distressed debt, and offers state-of-the-art analysis and research on the costs of bankruptcy, credit default prediction, the post-emergence period performance of bankrupt firms, and more.

Author : G. Olson
Publisher : Springer
Page : 368 pages
File Size : 53,8 Mb
Release : 2000-08-17
Category : Law
ISBN : STANFORD:36105025267118

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Banks in Distress:Lessons from the American Experience of the 1980s by G. Olson Pdf

The close of the 20th century saw a remarkably high incidence of bank distress and insolvency. This book seeks to identify the causes of this ongoing financial crisis and to draw lessons for the future, with the aim of assisting developed, transition and emerging economies alike to better cope with future crises. Banks in Distress takes as its focus the major financial system crisis experienced by the US in the 1980s, reviewing the evolution of the US banking system and the legislative, regulatory, and monetary policies of the 1980s which set the stage for the crises that followed. The author argues that the financial difficulties in the US, and to some extent the rest of the world, were largely precipitated and exacerbated by government intervention into the American domestic economy through uncoordinated monetary and fiscal policy, as well as the uncoordinated enactment of regulatory, supervisory and enforcement legislation and policy. The book in particular examines the importance of asset valuation, asset value inflation and deflation, and capital adequacy for banking and financial services organizations, an understanding of which is crucial to the development of a coherent regulatory framework. The author considers what can be learned from the US experience and suggests the need for significant changes in the banking law and policy of most developed and emerging economies, arguing that a stable and workable financial system requires transparent, coordinated and proactive governmental policies in the banking, fiscal, monetary and national economic areas.