The Role of the Prudential Supervision and Financial Restructuring of Banks During Transition to Indirect Instruments of Monetary Control

November 1, 1996

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The Role of the Prudential Supervision and Financial Restructuring of Banks During Transition to Indirect Instruments of Monetary Control, (USA: International Monetary Fund, 1996) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper proposes a stylized sequencing of banking supervision and bank restructuring measures designed to complement and expedite the adoption of indirect instruments of monetary policy. Appropriate sequencing reflects both operational considerations and macroeconomic effects of structural measures. It typically involves implementing initially a critical mass of reforms of prudential supervision and of financial structure of both banks and enterprises, and subsequently adapting and refining these measures in line with the evolution of markets and internal governance. This approach facilitates implementation because the initial cost of bank restructuring can be offset, partly, through the budgetary effects of improved enterprise finances.

Subject: Asset and liability management, Bank resolution, Bank supervision, Banking, Debt reduction, Financial crises, Financial institutions, Financial regulation and supervision, Loans

Keywords: Baltics, Bank asset portfolio, Bank capital, Bank liquidation, Bank portfolio, Bank resolution, Bank restructuring, Bank supervision, Banking supervision, Bank-restructuring process, Central and Eastern Europe, Debt reduction, Eastern Europe, Global, Liberalized interest rates, Loan loss, Loan workout, Loans, Market development, Monetary management, Problem bank, Recovery arrangement, Resolution strategy, WP

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1996/128
Stock No:

WPIEA1281996
ISBN:

9781451935455
ISSN:

1018-5941

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