The Economics of Bank Restructuring : Understanding the Options /

Based on a simple framework, this note clarifies the economics behind bank restructuring and evaluates various restructuring options for systemically important banks. The note assumes that the government aims to reduce the probability of a bank's default and keep the burden on taxpayers at a mi...

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Detalhes bibliográficos
Autor principal: Landier, Augustin
Outros Autores: Ueda, Kenichi
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2009.
Colecção:IMF Staff Position Notes; Staff Position Note ; No. 2009/012
Acesso em linha:Full text available on IMF
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520 3 |a Based on a simple framework, this note clarifies the economics behind bank restructuring and evaluates various restructuring options for systemically important banks. The note assumes that the government aims to reduce the probability of a bank's default and keep the burden on taxpayers at a minimum. The note also acknowledges that the design of any restructuring needs to take into consideration the payoffs and incentives for the various key stakeholders (i.e., shareholders, debt holders, and government). 
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