Strengthening Safeguards in Bank Resolution Frameworks in Emerging and Developing Countries
The paper will focus on the resolution frameworks of a sample of 12 countries taken from 6 regions. The review of the sample countries is used to analyze issues that may be relevant for other countries and to discuss potential challenges faced in i...
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/350101588830865894/Strengthening-Safeguards-in-Bank-Resolution-Frameworks-in-Emerging-Developing-Countries-F http://hdl.handle.net/10986/33731 |
| Summary: | The paper will focus on the resolution
frameworks of a sample of 12 countries taken from 6 regions.
The review of the sample countries is used to analyze issues
that may be relevant for other countries and to discuss
potential challenges faced in implementing effective
safeguards. The remainder of the paper is organized as
follows: Section two discusses the rationale for significant
powers given to the resolution authority under the key
attributes and the far-reaching implications of these
powers. Section three offers a brief overview of the
safeguards that are incorporated in the key attributes,
describes the rationale and intent of each safeguard and how
to implement them to support an efficient bank resolution
framework. Section four reviews the observed features of
safeguards of current resolution regimes in 11 emerging and
developing countries, and one country that developed into an
advanced economy, to identify potential areas where
implementing effective safeguards may require significant
changes in various aspects of the local jurisprudence.
Building upon the observations made in section four, section
five aims to provide guidance for designing sound safeguards
in bank resolution frameworks of emerging and developing
countries. The paper ends with a section highlighting the
key take-aways. This paper is a research note reflecting the
authors’ review work and experiences and does not reflect in
any way the views of the World Bank or IMF or their
management or Boards. |
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