2007年-世界发展银行全球_Practical_Guidelines_for_Effective_Bank_Resolution_41页_1mb

Practical Guidelines for Effective Bank Resolution Summary

Core Content

This document, Practical Guidelines for Effective Bank Resolution, provides a comprehensive analysis of bank resolution frameworks and methods, with a specific focus on Latin America and the Caribbean (LAC) region. The study is authored by Javier Bolzico, Yira Mascaro, and Paola Granata from the World Bank's Poverty Reduction and Economic Management Department. It aims to offer policymakers practical guidance on how to design and implement an efficient bank resolution framework (BRF) and method (BRM), emphasizing the importance of minimizing financial and economic costs, preserving business continuity, and reducing contagion risks.

The paper outlines six key pillars that support the development of an efficient BRF, which are essential for ensuring the effectiveness of bank resolution processes. It also highlights the good-bank/bad-bank (GB-BB) approach as one of the most effective BRMs, particularly in the context of LAC, where legal frameworks are evolving to accommodate such methods.

Main Viewpoints

1. Concept of Bank Resolution

• Bank resolution refers to the procedures and measures taken by authorities to address the situation of an unviable bank.
• It is a critical component of bank supervision, typically initiated when standard and intensive supervision fail to restore the bank’s viability.
• The resolution process involves multiple stakeholders, including management, shareholders, employees, depositors, creditors, banking supervisors, the Deposit Insurance Agency (DIA), and acquiring banks.

2. Efficiency of Bank Resolution

• A bank resolution process is considered efficient if it:
  • Minimizes financial and economic costs, including credit supply and contagion risks.
  • Ensures a minimum level of deposit protection.
  • Avoids bailing out shareholders.
  • Is implemented transparently and promptly.

3. Good-Bank/Bad-Bank Approach

• The GB-BB method is a type of purchase and assumption (P&A) mechanism.
• It is effective in reducing contagion and preserving business continuity.
• It allows for the separation of viable and non-viable parts of a bank, facilitating the transfer of the good bank to a solvent acquiring institution.
• The method requires specific legal capabilities from supervisors, such as the ability to split the bank and transfer assets and liabilities.

Key Information

1. Six Pillars of an Efficient Bank Resolution Framework

2. Deposit Insurance Agency (DIA) Design Features

• Defined by law and regulations: The DIA must be established by law with clear and public rules of operation.
• Limited coverage: Coverage should be limited to prevent moral hazard and encourage market discipline.
• Appropriate funding features: Risk-sensitive premiums are preferred, but flat rates are still commonly used.
• Compulsory membership: Increases the insurance pool and ensures all institutions are covered.
• Monitoring function: The DIA should monitor deposit volatility and leverage to prevent risk-taking.
• Adaptation to the institutional environment: The DIA must be designed to address institutional weaknesses and promote accountability.

3. Enhanced Supervision

• Effective supervision reduces the number of unviable banks and promotes financial stability.
• It ensures that timely and reliable information is available to support early intervention and effective resolution.
• Supervisors must be empowered to take necessary actions, including removing management or shareholders, and initiating resolution processes.

4. Challenges and Considerations

• Legal changes during a bank resolution process can increase risks and uncertainty.
• The resolution process must be legally protected to avoid interruptions.
• The DIA must be autonomous yet accountable to ensure effective crisis management.

Conclusion

The paper emphasizes the need for a well-structured and adaptable bank resolution framework, supported by appropriate legal and institutional mechanisms. It highlights the importance of the GB-BB approach in reducing contagion and preserving financial services, while also stressing the role of the DIA and enhanced supervision in supporting efficient resolution processes. The authors advocate for a dynamic and continuously improved BRF that can respond to the evolving financial landscape in LAC and other developing regions.