Banks in Crisis
The current financial crisis evolved quickly. In most of the developed countries affected, governments initially improvised solutions that eventually led to substantial investments in systemically important banks. Not all their actions are worth em...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/10/11800003/banks-crisis http://hdl.handle.net/10986/10228 |
| Summary: | The current financial crisis evolved
quickly. In most of the developed countries affected,
governments initially improvised solutions that eventually
led to substantial investments in systemically important
banks. Not all their actions are worth emulating, especially
those that undermine normal governance arrangements and the
ability of all shareholders to hold the banks' board
and management accountable. Lessons from earlier crises show
that governments acting as temporary owners can minimize
costs to taxpayers by following sound commercial practices
and good corporate governance principles. Quickly developing
and making public the exit strategy is also important. |
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