Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience
Countries that have experienced banking crises have adopted one of two distinct approaches toward the resolution of non-performing assets-a centralized or a decentralized solution. A centralized approach entails setting up a government agency-an as...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2002/10/2032623/decentralized-credtor-led-corporate-restructuring-cross-country-experience http://hdl.handle.net/10986/19249 |
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okr-10986-192492021-04-23T14:03:42Z Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience Dado, Marinela E. Klingebiel, Daniela ACCOUNTING ACCOUNTING FRAMEWORK ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES ASSET RECOVERY BAD DEBT BALANCE SHEETS BANK CAPITAL BANK MANAGEMENT BANK PORTFOLIOS BANK PRIVATIZATION BANK RESTRUCTURING BANK SOLVENCY BANKING CRISES BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BONDS BUSINESS FAILURES CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL BASE CAPITALIZATION CAR CENTRAL BANK COMMERCIAL BANKS CONSOLIDATION CORPORATE RESTRUCTURING CORPORATE SECTOR CREDIT DISCIPLINE CREDIT RISK CROSS COUNTRY EXPERIENCE CROSS-COUNTRY EXPERIENCE DEBT DEBT RESTRUCTURING DILUTION OF OWNERSHIP DISPOSITION OF IMPAIRED ASSETS ECONOMIC GROWTH EMERGING MARKET ECONOMIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL RESTRUCTURING FINANCIAL STRUCTURES FORECLOSURE LAWS FOREIGN FIRMS FOREIGN INVESTORS FRAUDULENT ASSETS INCENTIVE FRAMEWORK INDUSTRIALIZED COUNTRIES INSOLVENCY INSOLVENT BANKS INTEREST INCOME INTEREST RATES JUDICIAL SYSTEMS LAWS LEGAL FRAMEWORK LOAN CLASSIFICATION NONPERFORMING LOANS OPERATING COSTS PENALTIES PORTFOLIO PRESENT VALUE PROFITABILITY RECAPITALIZATION REORGANIZATION SANCTIONS SAVINGS SAVINGS BANKS SHAREHOLDERS SHAREHOLDINGS STATE BANKS STATE ENTERPRISES SUBSTANDARD LOANS SYSTEMIC BANKING CRISES TRANSITION ECONOMIES TRANSPARENCY CREDITOR COUNTRIES CROSS-COUNTRY EXPERIENCE CORPORATE RESTRUCTURING BANKING CRISES DECENTRALIZATION IN MANAGEMENT ASSET LIABILITY MANAGEMENT CASE STUDIES CREDITOR COUNTRIES TRANSPARENCY Countries that have experienced banking crises have adopted one of two distinct approaches toward the resolution of non-performing assets-a centralized or a decentralized solution. A centralized approach entails setting up a government agency-an asset management company-with the full responsibility for acquiring, restructuring, and selling of the assets. A decentralized approach relies on banks and other creditors to manage and resolve non-performing assets. The authors study banking crises where governments adopted a decentralized, creditor-led workout strategy following systemic crises. They use a case study approach and analyze seven banking crises in which governments mainly relied on banks to resolve non-performing assets. The study suggests that out of the seven cases, only Chile, Norway, and Poland successfully restructured their corporate sectors with companies attaining viable financial structures. The analysis underscores that as in the case of a centralized strategy the prerequisites for a successful decentralized restructuring strategy are manifold. The successful countries significantly improved the banking system's capital position, enabling banks to write down loan losses; banks as well as corporations had adequate incentives to engage in corporate restructuring; and ownership links between banks and corporations were limited or severed during crises. 2014-08-01T21:38:20Z 2014-08-01T21:38:20Z 2002-10 http://documents.worldbank.org/curated/en/2002/10/2032623/decentralized-credtor-led-corporate-restructuring-cross-country-experience http://hdl.handle.net/10986/19249 English en_US Policy Research Working Paper;No. 2901 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING FRAMEWORK ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES ASSET RECOVERY BAD DEBT BALANCE SHEETS BANK CAPITAL BANK MANAGEMENT BANK PORTFOLIOS BANK PRIVATIZATION BANK RESTRUCTURING BANK SOLVENCY BANKING CRISES BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BONDS BUSINESS FAILURES CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL BASE CAPITALIZATION CAR CENTRAL BANK COMMERCIAL BANKS CONSOLIDATION CORPORATE RESTRUCTURING CORPORATE SECTOR CREDIT DISCIPLINE CREDIT RISK CROSS COUNTRY EXPERIENCE CROSS-COUNTRY EXPERIENCE DEBT DEBT RESTRUCTURING DILUTION OF OWNERSHIP DISPOSITION OF IMPAIRED ASSETS ECONOMIC GROWTH EMERGING MARKET ECONOMIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL RESTRUCTURING FINANCIAL STRUCTURES FORECLOSURE LAWS FOREIGN FIRMS FOREIGN INVESTORS FRAUDULENT ASSETS INCENTIVE FRAMEWORK INDUSTRIALIZED COUNTRIES INSOLVENCY INSOLVENT BANKS INTEREST INCOME INTEREST RATES JUDICIAL SYSTEMS LAWS LEGAL FRAMEWORK LOAN CLASSIFICATION NONPERFORMING LOANS OPERATING COSTS PENALTIES PORTFOLIO PRESENT VALUE PROFITABILITY RECAPITALIZATION REORGANIZATION SANCTIONS SAVINGS SAVINGS BANKS SHAREHOLDERS SHAREHOLDINGS STATE BANKS STATE ENTERPRISES SUBSTANDARD LOANS SYSTEMIC BANKING CRISES TRANSITION ECONOMIES TRANSPARENCY CREDITOR COUNTRIES CROSS-COUNTRY EXPERIENCE CORPORATE RESTRUCTURING BANKING CRISES DECENTRALIZATION IN MANAGEMENT ASSET LIABILITY MANAGEMENT CASE STUDIES CREDITOR COUNTRIES TRANSPARENCY |
| spellingShingle |
ACCOUNTING ACCOUNTING FRAMEWORK ASSET MANAGEMENT ASSET MANAGEMENT COMPANIES ASSET RECOVERY BAD DEBT BALANCE SHEETS BANK CAPITAL BANK MANAGEMENT BANK PORTFOLIOS BANK PRIVATIZATION BANK RESTRUCTURING BANK SOLVENCY BANKING CRISES BANKING CRISIS BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BANKS BONDS BUSINESS FAILURES CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL BASE CAPITALIZATION CAR CENTRAL BANK COMMERCIAL BANKS CONSOLIDATION CORPORATE RESTRUCTURING CORPORATE SECTOR CREDIT DISCIPLINE CREDIT RISK CROSS COUNTRY EXPERIENCE CROSS-COUNTRY EXPERIENCE DEBT DEBT RESTRUCTURING DILUTION OF OWNERSHIP DISPOSITION OF IMPAIRED ASSETS ECONOMIC GROWTH EMERGING MARKET ECONOMIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DATA FINANCIAL INSTITUTIONS FINANCIAL RESTRUCTURING FINANCIAL STRUCTURES FORECLOSURE LAWS FOREIGN FIRMS FOREIGN INVESTORS FRAUDULENT ASSETS INCENTIVE FRAMEWORK INDUSTRIALIZED COUNTRIES INSOLVENCY INSOLVENT BANKS INTEREST INCOME INTEREST RATES JUDICIAL SYSTEMS LAWS LEGAL FRAMEWORK LOAN CLASSIFICATION NONPERFORMING LOANS OPERATING COSTS PENALTIES PORTFOLIO PRESENT VALUE PROFITABILITY RECAPITALIZATION REORGANIZATION SANCTIONS SAVINGS SAVINGS BANKS SHAREHOLDERS SHAREHOLDINGS STATE BANKS STATE ENTERPRISES SUBSTANDARD LOANS SYSTEMIC BANKING CRISES TRANSITION ECONOMIES TRANSPARENCY CREDITOR COUNTRIES CROSS-COUNTRY EXPERIENCE CORPORATE RESTRUCTURING BANKING CRISES DECENTRALIZATION IN MANAGEMENT ASSET LIABILITY MANAGEMENT CASE STUDIES CREDITOR COUNTRIES TRANSPARENCY Dado, Marinela E. Klingebiel, Daniela Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience |
| relation |
Policy Research Working Paper;No. 2901 |
| description |
Countries that have experienced banking
crises have adopted one of two distinct approaches toward
the resolution of non-performing assets-a centralized or a
decentralized solution. A centralized approach entails
setting up a government agency-an asset management
company-with the full responsibility for acquiring,
restructuring, and selling of the assets. A decentralized
approach relies on banks and other creditors to manage and
resolve non-performing assets. The authors study banking
crises where governments adopted a decentralized,
creditor-led workout strategy following systemic crises.
They use a case study approach and analyze seven banking
crises in which governments mainly relied on banks to
resolve non-performing assets. The study suggests that out
of the seven cases, only Chile, Norway, and Poland
successfully restructured their corporate sectors with
companies attaining viable financial structures. The
analysis underscores that as in the case of a centralized
strategy the prerequisites for a successful decentralized
restructuring strategy are manifold. The successful
countries significantly improved the banking system's
capital position, enabling banks to write down loan losses;
banks as well as corporations had adequate incentives to
engage in corporate restructuring; and ownership links
between banks and corporations were limited or severed
during crises. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Dado, Marinela E. Klingebiel, Daniela |
| author_facet |
Dado, Marinela E. Klingebiel, Daniela |
| author_sort |
Dado, Marinela E. |
| title |
Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience |
| title_short |
Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience |
| title_full |
Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience |
| title_fullStr |
Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience |
| title_full_unstemmed |
Decentralized Creditor-Led Corporate Restructuring : Cross-Country Experience |
| title_sort |
decentralized creditor-led corporate restructuring : cross-country experience |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2002/10/2032623/decentralized-credtor-led-corporate-restructuring-cross-country-experience http://hdl.handle.net/10986/19249 |
| _version_ |
1764439398707888128 |