Simple Tools to Assist in the Resolution of Troubled Banks
This toolkit is designed to assist authorities in resolving troubled banks. It provides generic forms that can be adapted for use in planning supervisory actions or implementing resolution processes. This toolkit contains forms that are generic and...
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/01/16226887/simple-tools-assist-resolution-troubled-banks http://hdl.handle.net/10986/12342 |
| Summary: | This toolkit is designed to assist
authorities in resolving troubled banks. It provides generic
forms that can be adapted for use in planning supervisory
actions or implementing resolution processes. This toolkit
contains forms that are generic and will need to be tailored
to the particular country laws and circumstances. The
toolkit also contains a least cost or lesser cost model and
explanatory guide that provide diagnostic tools to assist
authorities in estimating the costs of various resolution
methods. The least cost or lesser cost model can also be
used to value various assets that may be offered for sale as
part of the resolution process. In some circumstances, the
decision will be made to liquidate a bank at the end of a
long period of utilizing other supervisory tools to try to
rehabilitate the bank, thereby providing the authorities
with adequate time to gather information about the problem
bank and prepare a plan for its closure. In other
circumstances, the authorities will have little time to plan
for a bank's closing and will have to rely on their
general crisis preparedness tools to handle the resolution
process as efficiently as possible. Whichever circumstances
are present, planning for bank resolution should be part of
a country's overall strategy for its financial sector. |
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