Issuing Government Bonds to Finance Bank Recapitalization and Restructuring : Design Factors that Affect Banks' Financial Performance /

Bonds issued by the government or government agencies are often used to finance bank restructuring following a systemic crisis. Many conflicting considerations affect the design of the bonds used to pay for public sector investment in bank equity or the purchase of distressed assets from banks. Some...

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Bibliographic Details
Main Author: Andrews, Michael
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2003.
Series:IMF Policy Discussion Papers; Policy Discussion Paper ; No. 2003/004
Online Access:Full text available on IMF
Description
Summary:Bonds issued by the government or government agencies are often used to finance bank restructuring following a systemic crisis. Many conflicting considerations affect the design of the bonds used to pay for public sector investment in bank equity or the purchase of distressed assets from banks. Some bond features can leave restructured banks facing significant risks, laying the foundation for future banking sector problems. Sovereign default makes publicly financed bank restructuring more difficult, but it is still possible to carry out if banks receive sufficient interest income to provide a margin over their cost of funds.
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<strong>On-Campus Access:</strong> No User ID or Password Required
Physical Description:1 online resource (31 pages)
Format:Mode of access: Internet
ISSN:1934-7456
Access:Electronic access restricted to authorized BRAC University faculty, staff and students