Issuing Government Bonds to Finance Bank Recapitalization and Restructuring Design Factors that Affect Banks' Financial Performance

Bonds issued by the government or government agencies are often used to finance bank restructuring following a systemic crisis. Many conflicting considerations affect the design of the bonds used to pay for public sector investment in bank equity or the purchase of distressed assets from banks. Some...

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Bibliographic Details
Main Author: Andrews, Michael
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2003
Series:IMF Policy Discussion Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Issuing Government Bonds to Finance Bank Recapitalization and Restructuring  |b Design Factors that Affect Banks' Financial Performance  |c Michael Andrews 
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300 |a 31 pages 
651 4 |a Côte d'Ivoire 
653 |a Economic & financial crises & disasters 
653 |a Depository Institutions 
653 |a Sovereign bonds 
653 |a Public debt 
653 |a Banks 
653 |a Public finance & taxation 
653 |a Financial crises 
653 |a Banks and banking 
653 |a Bank resolution 
653 |a Financial institutions 
653 |a Debt Management 
653 |a Micro Finance Institutions 
653 |a Debts, Public 
653 |a Bond ratings 
653 |a Debt 
653 |a Financial Institutions and Services: Government Policy and Regulation 
653 |a Crisis management 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Mortgages 
653 |a Investments: Bonds 
653 |a Sovereign Debt 
653 |a Bonds 
653 |a Banks and Banking 
653 |a Banking 
653 |a Investment & securities 
653 |a Public Finance 
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520 |a Bonds issued by the government or government agencies are often used to finance bank restructuring following a systemic crisis. Many conflicting considerations affect the design of the bonds used to pay for public sector investment in bank equity or the purchase of distressed assets from banks. Some bond features can leave restructured banks facing significant risks, laying the foundation for future banking sector problems. Sovereign default makes publicly financed bank restructuring more difficult, but it is still possible to carry out if banks receive sufficient interest income to provide a margin over their cost of funds