The Economics of Bank Restructuring Understanding the Options

Based on a simple framework, this note clarifies the economics behind bank restructuring and evaluates various restructuring options for systemically important banks. The note assumes that the government aims to reduce the probability of a bank’s default and keep the burden on taxpayers at a minimum...

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Bibliographic Details
Main Author: Landier, Augustin
Other Authors: Ueda, Kenichi
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2009
Series:IMF Staff Position Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:Based on a simple framework, this note clarifies the economics behind bank restructuring and evaluates various restructuring options for systemically important banks. The note assumes that the government aims to reduce the probability of a bank’s default and keep the burden on taxpayers at a minimum. The note also acknowledges that the design of any restructuring needs to take into consideration the payoffs and incentives for the various key stakeholders (i.e., shareholders, debt holders, and government)
Physical Description:39 pages
ISBN:9781462337422