The Challenges of Bankruptcy Reform
The 2008 financial crisis was followed by a global economic downturn, credit crunch, and reduction in cross-border lending, trade finance, remittances, and foreign direct investment, which adversely affected businesses around the world. The consequ...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101018113213 http://hdl.handle.net/10986/3931 |
| Summary: | The 2008 financial crisis was followed
by a global economic downturn, credit crunch, and reduction
in cross-border lending, trade finance, remittances, and
foreign direct investment, which adversely affected
businesses around the world. The consequent increase in the
number of firm insolvencies in the financial and corporate
sectors highlights the importance of efficient bankruptcy
laws. This paper summarizes the theoretical and empirical
literature on bankruptcy design, discusses the challenges of
introducing and implementing bankruptcy reforms, and
presents examples of how policymakers are trying to use the
current economic downturn as an opportunity to engage in
meaningful reform of the bankruptcy process. |
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