Financial institutions in distress : recovery, resolution, recognition / Ronald Davis [and seven others].

Format:

Book

Author/Creator:

Davis, Ronald, 1947- author.

Series:

Oxford scholarship online.

Oxford scholarship online

Language:

English

Subjects (All):

Financial institutions--Law and legislation.

Financial institutions.

Financial institutions, International--Law and legislation.

Financial institutions, International.

Physical Description:

1 online resource (504 pages)

Edition:

First edition.

Place of Publication:

Oxford : Oxford University Press, 2023.

Summary:

This work examines the issue of financial institutions in distress, and the difficulties of regulating these institutions across political borders. It considers existing hard and soft laws and regulations, advocating for a model law that would address the full range of financial institutions.

Contents:

Intro

Title Page

Copyright Page

Contents

List of Figures

List of Tables

Table of Cases

Table of Legislation

List of Abbreviations

A Brief Note about the Authors

1. Introduction

I. Cross-border Financial Intermediation and Distress

II. Regulation of Financial Intermediation

III. Responding to the Failure of Financial Institutions

IV. The Cross-border Resolution Gap

V. Plugging the Gap: A Model Law

VI. The Aim of This Book

VII. The Structure of the Book

VIII. Methodology

2. Why the Special Treatment for Financial Institutions

I. Introduction

II. Some Basic Concepts

A. Things, Property, Assets, and Financial Assets

B. Planning, Recovery, Resolution, and Liquidation

III. The Financial Sector

A. Financial Intermediation and Money Creation

B. The Inherent Riskiness of Financial Intermediation

C. Bank and Non-Bank Financial Institutions

IV. Systemic Risk and Systemic Stability

A. Micro Versus Macro Prudence

B. Schematic Definitions of Risk and Stability

C. Vulnerabilities

D. Emerging Vulnerabilities I-Climate Change

E. Emerging Vulnerabilities II-Digital Assets

1. An analytical taxonomy

2. Anchored and unanchored digital assets

3. Distributed ledgers and blockchains

4. Crypto-assets and crypto-currencies

5. Implications for the financial sector

F. Close-out Netting

1. 'Standard' security interests

2. Netting

3. Close-out and immunity from moratorium

G. Risk Materializes into Crisis

V. Modelling the Onset of Systemic Crises

A. The Risk Amplification Model

B. The Domino Model

VI. Systemically Important Financial Institutions

A. Banks

B. Insurers

C. Financial Market Infrastructure

D. Financial Institutions Holding Client Assets

VII. The Role of the Resolution and Insolvency Regime

A. Bail-outs.

B. The Need for and Possibility of Special Resolution Regimes

VIII. Sovereign Debt and the Implications for Bank Financial Distress

3. The Regulatory Landscape of Supervision and Resolution of Financial Institutions: A Cross-border Perspective

II. Regulation and Supervision of Financial Institutions: A History of Failures

A. Failures that Led to the Developments of the Basel Accords by the BCBS and their Revisions Over Time

B. From Early Risk Management Efforts to the Global Financial Crisis: Lessons from the Basel Accords

C. The Regulatory Defence Against the Global Financial Crisis: Reinforcing Minimum Standards for Sound Prudential Regulation and Supervision

1. The revision of Basel II standards

2. The Basel principles for effective supervision

3. Supervisory authority and accountability

4. Cooperation of supervisory authorities

5. The exercise of prudential supervision

6. Transparency in financial reporting and audits

III. Regulation and Supervision of Insurance Companies: A Slow Process Towards Harmonization

A. Main Features of the Insurance Framework and its Long-lasting Fragmentation

B. Regulatory Developments Before the Global Financial Crisis: The Role of IAIS

C. The AIG Failure and Past Episodes of Distress in the Insurance Sector

D. The Regulatory Response to Preserve Insurers' Stability: Stricter Rules, More Capital

1. The International Association of Insurance Supervisors framework and core principles

2. Insurance regulatory reforms in the European Union

3. Switzerland's regulatory framework

IV. From Enhanced Supervision to Resolution

A. The 2010 Basel Report: Beyond Corporate Bankruptcy Law

B. The FSB Key Attributes: Harmonization and Cooperation in Cross-border Resolution

1. The goal of harmonization of substantive rules.

2. The establishment of cooperation tools

C. Ex Ante and Ex Post Cooperation: Crisis Prevention and the Interaction Between Supervisory and Resolution Tools

1. Recovery and resolution plans

2. Early intervention measures

a) Example of early intervention as part of the resolution framework-Canada

3. Crisis management groups

4. Institution-specific cross-border agreements

5. Information sharing

V. The International Recovery and Resolution Framework in Action: Obstacles that Still Hinder Effective Cross-border Cooperation

A. Cooperation Mechanisms and Tools in a Purely International Environment

B. Cooperation Mechanisms and Group Resolution in the EU Resolution Framework

C. Various Strategies Under Which Cross-jurisdictional Resolution Can be Achieved-The Single Point of Entry (SPOE) and the Multiple Points of Entry (MPOE) Strategies

VI. Conclusion

4. Resolution and Other Crisis Management Tools

II. Bail-out/Lender of Last Resort Tools

A. Overview

B. Bail-outs During the Financial Crisis

C. The Effectiveness of Crisis Bail-outs

D. Post-Crisis Developments

E. Conclusion

III. The Resolution Toolbox for Troubled Financial Institutions

1. The key resolution tools

2. Requirements and safeguards

B. Bail-in

1. Overview

2. Going concern and gone concern bail-in

3. Characteristics of bail-in

4. Bail-in regimes in the US and Europe

5. Bail-in experience in Europe

C. Effectiveness of Bail-in Measures

2. The loss absorption capacity of bail-in: TLAC and MREL

D. Bridge Bank

2. Characteristics of a bridge bank

3. Use of the bridge bank tool

E. Asset Separation Tools

F. Sale of Business/Merger Tool

G. Stays

2. Temporary stay on early termination rights in financial contracts.

IV. Insurance Resolution Tools

C. Transfer Tools: Sale of Business, Bridge Institution, and Asset Separation

D. Run-off

E. The Forthcoming EU Resolution Framework for the Insurance Sector

F. Resolution Regime in Selected Countries

V. The Valuation Process

B. The Difficulty of the Valuation Process

C. Valuation for the Purpose of Insurance Resolution

VI. Funding Resolution

VII. Orderly Liquidation

VIII. The Cross-border Effects of Resolution Measures

A. Recognition and Supportive Measures

B. Bail-in and Other Resolution Tools in a Cross-border Scenario

1. Regulatory arbitrage and solutions

2. Statutory recognition of bail-in and equitable treatment of creditors

3. Contractual recognition

4. Regulatory strategies to cross-border resolution tools: SPOE versus MPOE

IX. Conclusion

5. The Application of the Regulatory Landscape (I)-Consolidated Systems

II. Relevant Country Examples for Consolidated Systems

A. The United States Federal Deposit Insurance Corporation (FDIC) Model

2. Bank resolution in the US

3. The US system: cross-border matters

B. The Regional Integrated Model: The European Union's System for the Eurozone

C. The Canadian System

1. Supervisory authority and early intervention

2. Resolution

3. Compensation for depositors and policyholders

4. Compensation for creditors and shareholders in a failure

5. Cross-border resolution in Canada

D. Two Models of Large, Exporting Asian Economies

1. Overview of the Japanese banking system

2. The Japanese resolution system

3. Bail-in rule in the Japanese framework

4. Japanese cross-border coordination

5. An overview of the South Korean system

6. South Korean cross-border matters

E. Financial Hubs: Singapore and Hong Kong.

1. Singapore's banking sector

2. Singapore's resolution framework

3. Singapore's cross-border cooperation

4. Introductory remarks with respect to Hong Kong

5. Hong Kong's resolution framework

6. Hong Kong's cross-border cooperation

6. The Application of the Regulatory Landscape (II)-Emerging Models

II. Relevant Country Examples

A. The (Semi) Public Model: China

1. Government control in the banking structure

2. Insolvency and resolution

3. Cross-border matters

B. Banking for One Billion: The Indian System

1. The banking sector

2. Institutional framework

3. Resolution and insolvency

4. Cross-border element and the Indian system

C. Africa: Two Conspicuous Examples

2. Nigeria: Banking in Africa's largest economy

3. South Africa

D. Latin America

1. Introductory remarks on the Latin-American region

2. Mexico as a representative example of the Latin-American region

III. Concluding Remarks

7. Principles and Theoretical Foundations of an Effective Financial Institution Resolution Regime

II. Theoretical Foundations

A. The Concept of Fairness

B. Rawlsian Notions of Fairness Can Help Inform Resolution Approaches

C. Rizwaan Mokal's Authentic Consent Model of Insolvency Law Choice

D. Critiques of John Rawls' Substantive Theory of Justice

E. Relevance of Amartya Sen's Idea of Justice to Design of a Cross-border Resolution Framework

F. Martha Nussbaum's 'Human Capabilities' Can Contribute to Designing Cross-border Cooperation

G. Irit Mevorach's Modified Universalism as End Objective

III. Insolvency: Fairness Through Efficiency as the Foundation of a Cross-border Resolution Model

IV. Principles Informing Cross-border Financial Institution Resolution.

A. Protection of Deposit Holders and Insurance Policyholders.

Notes:

This edition also issued in print: 2023.

Includes bibliographical references and index.

Description based on online resource; title from home page (viewed on September 4, 2023).

Other Format:

Print version: Davis, Ronald Financial Institutions in Distress

ISBN:

0-19-197680-6

0-19-288253-8

0-19-288252-X

OCLC:

1393308833