Author : Mr.Michael Andrews
Publisher : International Monetary Fund
ISBN 13 : 1451843550
Total Pages : 26 pages
Book Rating : 4.4/5 (518 download)
Book Synopsis What Happens After Supervisory Intervention? Considering Bank Closure Options by : Mr.Michael Andrews
Download or read book What Happens After Supervisory Intervention? Considering Bank Closure Options written by Mr.Michael Andrews and published by International Monetary Fund. This book was released on 2003-01-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Closures have been used to resolve problem banks in many countries in a wide range of economic circumstances, yet banking supervisors frequently defer intervention and closure. Avoiding the costs of disruption is the principal argument in favor of extraordinary measures, such as the use of public funds for recapitalization or forbearance, as alternatives to closing insolvent banks. Well-planned and implemented closure options can preserve essential functions performed by failing banks, mitigating disruption. Extraordinary measures to avoid closure should generally be avoided, but may be used in a systemic crisis to preserve some portion of a widely insolvent banking sector.