How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans

How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans

In modern economies, banks are typically the primary financial intermediaries and are fundamental to a stable financial system, one that is capable of efficiently allocating resources, assessing and managing financial risks, maintaining employment...

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Bibliographic Details
Main Author: World Bank Group
Format: Brief
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
NON-PERFORMING LOANS
DEBT RESOLUTION
INSOLVENCY
CREDITOR RIGHTS
BANKING REGULATION
Online Access:http://documents.worldbank.org/curated/en/163151612172227669/How-Insolvency-and-Creditor-Debtor-Regimes-Can-Help-Address-Nonperforming-Loans
http://hdl.handle.net/10986/35120
id okr-10986-35120
recordtype oai_dc
spelling okr-10986-351202021-09-17T00:39:18Z How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans World Bank Group NON-PERFORMING LOANS DEBT RESOLUTION INSOLVENCY CREDITOR RIGHTS BANKING REGULATION In modern economies, banks are typically the primary financial intermediaries and are fundamental to a stable financial system, one that is capable of efficiently allocating resources, assessing and managing financial risks, maintaining employment levels close to the economy’s natural rate, and eliminating price movements of real or financial assets that will affect monetary stability or employment levels. When banks are not able to recover the money lent, the financial system and the economy at large may suffer. Non-performing loans (NPLs) erode the profitability and can threaten the solvency of banks, and when a sufficiently large volume of loans is affected, they can potentially threaten financial sector stability. Efficient legal regimes that promote effective insolvency and creditor/debtor rights (ICR) are important tools that facilitate debt recovery, reduce the cost of credit, increase access to finance and, as a result, help improve NPL levels. This policy note examines the relationship between effective ICR systems and NPL levels. 2021-02-08T19:42:56Z 2021-02-08T19:42:56Z 2021 Brief http://documents.worldbank.org/curated/en/163151612172227669/How-Insolvency-and-Creditor-Debtor-Regimes-Can-Help-Address-Nonperforming-Loans http://hdl.handle.net/10986/35120 English Equitable Growth, Finance and Institutions Notes; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic NON-PERFORMING LOANS
DEBT RESOLUTION
INSOLVENCY
CREDITOR RIGHTS
BANKING REGULATION
spellingShingle NON-PERFORMING LOANS
DEBT RESOLUTION
INSOLVENCY
CREDITOR RIGHTS
BANKING REGULATION
World Bank Group
How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans
relation Equitable Growth, Finance and Institutions Notes;
description In modern economies, banks are typically the primary financial intermediaries and are fundamental to a stable financial system, one that is capable of efficiently allocating resources, assessing and managing financial risks, maintaining employment levels close to the economy’s natural rate, and eliminating price movements of real or financial assets that will affect monetary stability or employment levels. When banks are not able to recover the money lent, the financial system and the economy at large may suffer. Non-performing loans (NPLs) erode the profitability and can threaten the solvency of banks, and when a sufficiently large volume of loans is affected, they can potentially threaten financial sector stability. Efficient legal regimes that promote effective insolvency and creditor/debtor rights (ICR) are important tools that facilitate debt recovery, reduce the cost of credit, increase access to finance and, as a result, help improve NPL levels. This policy note examines the relationship between effective ICR systems and NPL levels.
format Brief
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans
title_short How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans
title_full How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans
title_fullStr How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans
title_full_unstemmed How Insolvency and Creditor-Debtor Regimes Can Help Address Nonperforming Loans
title_sort how insolvency and creditor-debtor regimes can help address nonperforming loans
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/163151612172227669/How-Insolvency-and-Creditor-Debtor-Regimes-Can-Help-Address-Nonperforming-Loans
http://hdl.handle.net/10986/35120
_version_ 1764482366585176064

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