Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This Technical Note discusses the findings and recommendations in the Financial Sector Assessment Program for Spain in the areas of bank resolution and crisis management frameworks. The institutional framework in Spain has been strengthened and is more appropriate for managing the resolution process. At the Banking Union level, the Single Supervisory Mechanism is responsible for supervising all significant entities. The Single Resolution Board is the resolution authority for such entities, as well as for cross-border groups. Although the framework for bank resolution is well designed, the system could be enhanced. Recovery planning for Spanish banks is progressing, but further progress is warranted.

Banks and Banking --- Financial Risk Management --- Financial Institutions and Services: Government Policy and Regulation --- Crisis Management --- Economic & financial crises & disasters --- Bank resolution framework --- Crisis resolution --- Bank resolution --- Crisis management --- Crisis management framework --- Financial crises --- Bridge bank --- Spain

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper reviews how recent studies of banking crises differ with regard to the dating, length, and costs of the crises. Significant discrepancies in these features suggest the absence of analytical consensus. The data allow an examination of the relation between perceived crisis length, as an index of delay in taking actions to resolve a crisis, and crisis costs. Cross-sectional evidence does not show that the length of a crisis is a significant contributor to its resolution cost. A measure of economic cost, the growth shortfall in the crisis period, shows more evidence of a link.

Banks and Banking --- Financial Risk Management --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Financial Crises --- Economic & financial crises & disasters --- Banking --- Banking crises --- Financial crises --- Commercial banks --- Crisis resolution --- Financial institutions --- Bank resolution --- Banks and banking --- Crisis management --- United States

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This technical note discusses key findings of the assessment of Crisis Management and Bank Resolution Framework for France. The findings reveal that the crisis preparation, crisis identification, and crisis management processes in the supervisory authority (ACP) are comprehensive and well structured. Without having a formal U.S.-type “PCA-regulation,” the ACP identifies weak banks and requests appropriate remedial measures to be taken. The ACP also actively uses the Basel II Pillar 2 instrument to require add-ons on an individual-bank basis to the minimum regulatory capital requirements, reflecting the assessed riskiness of a bank.

Crisis management --- Banks and banking --- Crises --- Management of crises --- Management --- Problem solving --- Conflict management --- Banks and Banking --- Financial Risk Management --- Financial Institutions and Services: Government Policy and Regulation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Crisis Management --- Economic & financial crises & disasters --- Banking --- Bank resolution framework --- Bank resolution --- Deposit insurance --- Bank liquidation --- Financial crises --- Crisis resolution --- France

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This technical note on Crisis Management, Resolution, and Safety Nets on Singapore highlights that the resolution tools are well designed, with the exception of bail-in powers; however, steps are still needed to operationalize the resolution plans. The note reviews current practices, considering international best practice principles as outlined in the Financial Stability Board’s Key Attributes for Effective Resolution of Financial Institutions and the International Association of Deposit Insurers’ Core Principles Effective Deposit Insurance Systems. Monetary Authority of Singapore currently develops resolution plans for Domestic Systemically Important Bank only. The resolution plans for each institution must be reviewed for both internal consistency and cross-institutional consistency. Some extension of resolution planning should be considered. The funding arrangements for resolution aim at limiting public sector exposure to loss. Losses will be first borne by equity holders and unsecured subordinated creditors. When additional funds are required, the deposit insurance fund, built by ex-ante premiums from members, can be used to support the resolution of members on an equivalent cost basis.

Financial institutions --- Financial intermediaries --- Lending institutions --- Associations, institutions, etc. --- Banks and Banking --- Financial Risk Management --- Financial Institutions and Services: Government Policy and Regulation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Crisis Management --- Economic & financial crises & disasters --- Banking --- Bank resolution framework --- Crisis resolution --- Deposit insurance --- Crisis management --- Financial crises --- Bank resolution --- Bridge bank --- Banks and banking --- Singapore

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This technical note analyzes the existing legal and institutional frameworks in Australia, including coordination arrangements and focuses on crisis preparedness, including recovery and resolution planning as well as the Reserve Bank of Australia’s (RBA) lender-of-last resort functions. The analysis highlights that Australia has a well-established framework for financial stability, surveillance and policy formulation and the resolution regime for financial institutions has been significantly enhanced since the financial crisis. Australian Prudential Regulation Authority (APRA) has made progress in developing recovery planning requirements for the banking industry, extending these from large to medium sized and smaller banks. However, there is a need to better integrate the recovery planning within the risk management framework and operational testing exercises and to significantly enhance APRA’s work on resolution planning, particularly for the largest banks. The paper recommends that the Australian authorities should introduce an ex-ante funded deposit insurance scheme, based on best international practice.

Crisis management --- Banks and banking --- Crises --- Management of crises --- Management --- Problem solving --- Conflict management --- Banks and Banking --- Financial Risk Management --- Financial Institutions and Services: Government Policy and Regulation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Crisis Management --- Financial Crises --- Economic & financial crises & disasters --- Banking --- Bank resolution framework --- Crisis resolution --- Financial crises --- Bank resolution --- Australia