Back Matter

Author(s):
David Hoelscher
Published Date:
October 2006
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    Index

    Compiled by Sue Carlton

    • administrative measures (deposit freezes) 10-12

    • Agricultural Bank (Lithuania) 289, 290, 318

    • Agricultural Bank (Mongolia) 292, 294, 298, 304, 305

    • Agrobank (Lithuania) 284

    • Ardyn Bank (People’s Bank) 291, 293, 294, 296-7, 298, 300, 302

    • Argentina 10, 11, 209

    • Asian banking crisis 6, 7, 13, 16, 20, 35, 42, 216-17, 304

    • Asian Development Bank 330

    • asset management 4, 15-17, 20, 33-4, 59-60, 300-1

      • profit on asset disposition 71-2, 87

      • see also asset management companies (AMCs); non-performing loans (NPLs); purchase and assumption (P&A)

    • asset management companies (AMCs) 15-17, 34, 43, 116-17, 212-26, 288–9

      • centralized versus decentralized structure 215-17

      • and development of market for NPLs 348, 357-63, 366

      • disposal of assets 224-5, 362-3, 366

      • funding 223-4

      • governance 218-20

      • ‘hospital bank’ approach 320

      • incentives 220-1

      • legal powers of 217-18

      • measuring performance of 219-20

      • objectives of 212-14

      • ownership of 15-16, 214-15, 221

      • selection of assets 221-2

      • transparency and accountability 218-19

      • valuation/pricing of assets 222-3, 358-61

      • see also Indonesian Bank

        • Restructuring Agency (IBRA); Korea

        • Asset Management Corporation

        • (KAMCO); Mongolian Asset

        • Management Agency (MARA)

    • Aura Bank 285, 287, 288, 318, 320

    • Austria 175

    • balance sheet threshold 191-2

    • Bank Central Asia 338

    • bank closure 12-13, 32, 142-59

      • Bulgaria 275, 310

      • during systemic crisis 154-8

      • Indonesia 156, 329-33, 335-7, 340, 342-5

      • Mongolia 294, 297-302, 309, 310

      • poor closure rule 166, 167

      • and special role of banks 149-54

      • supervisory process leading to 143-9

      • see also liquidation

    • Bank Consolidation Company (BCC)

      • (Bulgaria) 270-2, 274, 279

    • Bank Dagang Nasional Indonesia (BDNI) 338

    • Bank Danamon 338, 341

    • Bank Indonesia (BI) 8-9, 331, 333, 334, 335

    • Bank for International Settlements (BIS) 185, 234, 235, 253

    • Bank of Investment and Technological Innovation (BITI) (Mongolia) 291-2, 293, 294, 298, 304, 305

    • Bank of Lithuania (BOL) 283-4, 285, 286, 288, 320

    • Bank Mandiri 238

    • Bank Tiara Asia 338

    • banking crisis resolution facility 315-17

    • Banking Regulation and Supervision Agency (BRSA) 370-4, 375

    • banks, condition of 79-83, 116, 156-8

    • Basel Committee on Banking Supervision 98, 185, 200

    • Biochim 278

    • blanket guarantees 7-10, 13, 31, 40, 42, 154, 332, 333, 343, 369

    • Bolivia 209

    • bonds see government bonds

    • Brazil 175

    • bridge banks 33, 222, 338

    • budgetary accounting 39-43

    • Bulbank 273

    • Bulgaria

      • bank closures 275, 310

      • banking crisis (1996) 269-82

        • early signs of weakness 272-5, 310

        • economic background to 269-72

        • initial response 275-7

        • resolution 277-9, 311, 312, 315-17

        • restructuring 279-81, 313-14

      • banking crisis resolution facility 315-17

      • banking system 270-2, 306

      • currency board arrangement (CBA) 279-82, 314, 315

      • deposit insurance 276-7, 309

      • and EU accession 282

      • and foreign banks 308-9

      • restructured loans 203

    • Bulgarian Bank of Foreign Trade 270

    • Bulgarian National Bank (BNB) 270, 272, 274, 275, 276, 277, 278-9, 281

    • capital adequacy ratios (CARs) 12, 144, 234, 235, 253, 333, 372, 373-4, 376

    • Caprio, G. 72, 88

    • Central Asian Bank (CAB) 294

    • Central Bank of Turkey (CBT) 369

    • centralized asset management companies (CAMCs) 15-16

    • Cerberus Capital 363

    • Cheju Bank 235, 236

    • Chile 42

    • China 16

    • Chohung Bank 234-5

    • Cinda Asset Management Company (China) 213

    • closure see bank closure

    • Commercial Bank of Korea 234

    • Commerz Bank 234

    • confidence, maintaining 99, 100, 117, 314, 341

    • conservatorship 114-15, 144

    • Consortium de Realisation (France) 213

    • containment 4, 5-12, 21

      • administrative measures (deposit freezes) 10-12

      • imposing nominal losses (haircuts) 9-10, 255

      • see also blanket guarantees; liquidity support

    • Continental Illinois National Bank 105, 180

    • Cooperative Bank (Mongolia) 291, 293

    • corporate debt restructuring 15-17

    • corporate insolvency 185-6, 191

    • cost-benefit analysis of intervention 25-30

      • accounting of economic benefits and costs 52-68

      • broad-based interventions 39

      • economic costs 29-30, 61, 66

      • ex ante versus ex post issues 36-8

      • fiscal costs 28-9, 39-42, 57-61, 66-7, 72-4, 88-9, 154

      • and government decision process 63-6

      • long-term consequences 51-2, 56-7

      • monitoring costs 57, 73, 89

      • nature of benefits 28

      • proactive interventions 38-9, 64, 65

      • quantifying benefits and costs 35-43

        • benefits 68-72, 84-9

        • costs 72-4

      • search costs 57-9, 73, 89

      • see also moral hazard

    • credit crunch 46, 47, 50

    • Credit Lyonnais 213

    • creditors 98, 117, 149

    • crisis zone 44, 48-9

    • currency board arrangement (CBA) 279-82, 283, 284, 314, 315

    • currency stabilization fund 316

    • Czech Republic 175

    • Daenong group 89

    • Daewoo Group 232, 350, 356, 357, 360, 363

    • Danaharta (Malaysia) 213, 217, 222, 223, 224

    • Dean Witter 363

    • deposit insurance/guarantee 31, 103-4, 149-50, 154, 163, 314-15

      • blanket guarantees 7-10, 13, 31, 40, 42, 154, 332, 333, 343, 369

      • costs and benefits of 40, 49-50, 51, 53-6, 57, 61, 62-3, 66, 72-3, 80, 88-9

      • state guarantees 35, 41, 43, 51

    • depositors

      • access to funds

        • best practices recommendations 180-2

        • cross-country differences 174-80, 181

        • delayed 164-5, 166, 167-8, 172-4, 175, 180, 189

        • and market discipline 165, 172-4, 180

        • timing decision 172-4

      • immediate payment of claims

        • disadvantages of 172

        • history of 170-2

        • procedures for 169-70

      • losses to 163-5

        • reducing 168-9

        • sources of 166-7

      • see also deposit insurance/guarantee

    • Deutsche Bank 233-4, 238, 239, 240, 241-2, 253, 258, 259, 363

    • Deutsche Bank Capital Partners (DBCP) 259

    • Development Bank (Lithuania) 290

    • distress zone 44, 48

    • Dong-Ah Construction 232, 246, 247, 248

    • Ecuador 11

    • Estonia 10

    • European Union Directive on Deposit Guarantee Schemes 171

    • ‘evergreening’ 46, 206

    • Federal Deposit Insurance Corporation (FDIC) 105, 165, 169-70, 171, 180, 181, 214, 222, 224

      • Improvement Act (FDICIA) 168, 169, 181

      • survey of deposit insurers 150, 174-80

    • Federal Saving and Loan Insurance Corporation 171

    • Federation of Financial Unions (Korea) 243

    • Financial Holding Company Act (2000)

      • (Korea) 235

    • Financial Institutions Development Fund (Thailand) 213

    • Financial Sector Restructuring Agency (FRA) (Thailand) 213

    • Financial Stability Forum 186

    • Financial Stability Institute 186

    • Financial Supervisory Commission (FSC) (Korea) 234, 238, 261, 262, 355

    • Financial Supervisory Service (FSS) (Korea) 235, 247, 261, 262

    • First Private Bank (Bulgaria) 272, 275

    • forbearance 35, 153, 166, 167, 192, 245

    • Frydl, E. 72, 88

    • GE Capital 248, 363

    • Generally Accepted Accounting Principles (GAAP) (US) 200

    • Global Bank Insolvency Initiative (GBII) 184-94

      • bank insolvency and corporate insolvency 185-6, 191

      • development of 185-6

      • framework for banking supervision 186

      • insolvency proceedings 186-93

        • administrative versus judicial proceedings 190-1

        • liquidation proceedings 188-90

        • mandatory versus discretionary systems 192

        • official administration 187-8

        • powers of official administrator 192-3

        • standards of judicial review 193

        • threshold for commencement of 191-2

    • Goldman Sachs 260, 363

    • Golomtbank 305

    • good bank/bad bank technique 113-14

    • government bonds 39, 42, 119-38, 224, 311

      • foreign currency bonds 125-6

      • and interest rates 124-5

      • maturity 126

      • sovereign guarantee 122

      • special purpose bonds 121-4

      • use of public funds 121

      • valuation 127-30

    • Greece 175

    • Gyungnam Bank 235, 236

    • haircuts (nominal losses) 9-10, 255

    • Hana Bank 229, 257, 260-1

    • Hanil Bank 234

    • Hanvit Bank 234-5, 236

    • hedge bonds 125

    • Hong Kong and Shanghai Banking Corporation (HSBC) 233, 236

    • Housing and Commercial Bank (Korea) 249, 251

    • Hynix 254-5

    • Hyundai Group 234, 242

    • Indonesia 6

      • asset management 16, 216, 221, 225

      • bank closures 156, 329-33, 335-7, 340, 342-5

      • bank restructuring plan 339-42

      • bank takeovers 335-9, 340, 342

      • blanket guarantees 7, 8-9

      • currency depreciation 330-1

      • foreign currency bonds 125

      • ‘hard’ open bank intervention 335-7

      • intervention during banking crisis 329-45

      • recapitalization 341-2, 345

      • restructured loans 203, 210

      • ‘soft’ open bank intervention 330, 333-5

    • Indonesian Bank Restructuring Agency (IBRA) 156, 213, 225, 330, 333-9, 340-2

    • Innovation Bank (Lithuania) 287, 318

    • Insurance Bank (Mongolia) 291, 294, 296, 298, 300, 302, 304

    • Interbank Deposit Protection Fund (Italy) 174

    • International Financial Reporting Standards (IFRS) 200

    • International Monetary Fund (IMF) 3-4, 20-1, 230, 245, 269, 317, 330, 336

      • see also Global Bank Insolvency Initiative (GBII)

    • Isle of Man Financial Supervision Committee 175

    • Italy 174, 175

    • Japan 10, 42, 174, 175

    • Kang, C. 365

    • Kazakhstan 150

    • Kim Dae-Jung 238, 247

    • Klingebiel, D. 72, 88

    • Kookmin Bank 249

    • Korea 6

      • asset management 16, 214, 221, 222

      • banking sector restructuring 234-6

      • blanket guarantees 7

      • development of market for NPLs 357-63, 366

      • general strike 243-4

      • IMF-supported program 232-4, 351

      • ministry of finance and economy (MOFE) 233, 236, 261, 262

      • nonperformiing loans (NPLs) 348-66

      • restructured loans 210

      • retail banking 249-51, 265

      • see also Seoul Bank

    • Korea Asset Management Corporation (KAMCO) 213, 224, 348-66

      • disposal of NPLs 248, 362-3, 366

      • governance structure 355-6

      • KAMCO Act 355-6

      • purchase of NPLs 357-61

      • role in restructuring process 350-5

    • Korea Board of Audit (KBA) 261-2, 264

    • Korea Deposit Insurance Corporation (KDIC) 229, 233, 234, 238, 253-4, 259, 261-2, 264, 349-50

    • Korea Exchange Bank 234, 235

    • Korea First Bank (KFB) 233, 234, 236, 256-7, 351

    • Korea Trust Bank 230

    • Korean Development Bank (KDB) 355

    • Kwangju Bank 235, 236

    • Kyrgyz Republic 150

    • Latin America, banking stabilization funds 316, 317

    • Latvia 150, 175

    • lender-of-last-resort (LOLR) assistance 26, 42, 48, 49, 81, 83, 149, 154

    • Lim, W. 354

    • liquidation 14, 32, 102-4

      • advantages and disadvantages of 104, 106

      • avoiding costs of 53-6, 68-70, 72, 84-5

      • liquidation proceedings 188-90

      • see also bank closure; purchase and assumption (P&A)

      • liquidity support 5-7, 9, 26-7, 29, 30-1, 39-42, 49, 154, 335, 343

      • liquidity threshold 191

      • Lithuania

        • asset management companies (AMCs) 288-9, 311, 319-21

        • banking crisis (1994-95) 269, 283-90

          • early signs of weakness 285-6

          • economic background to 283-5

          • initial response to 286-7

          • resolution 287-9, 312, 313-14

          • role of banking institutions 317-19

        • banking system 283-5

        • currency board arrangement (CBA) 283, 284, 286, 314

        • depositor protection 289, 290

        • legal and regulatory changes 288

        • restructured loans 203

        • state bank managers 308

    • Litimpex Bank 288, 318

    • loan rescheduling see restructured loans

    • Lone Star 248, 260-1, 363

    • Malaysia 6, 7, 16, 42, 203, 216, 217, 221, 223

    • memoranda of understanding (MOUs) 236, 253, 259, 263, 265, 275, 298, 304

    • Mencken, H.L. 3, 21

    • mergers 34, 41, 230, 234, 272, 314

    • Mexico 221

    • Mineralbank 275

    • Mongolbank 291, 292-3, 294-7, 298-9, 300, 301-2, 303, 304

    • Mongolia 290-305

      • asset management 311

        • see also Mongolian Asset Realization Agency (MARA)

      • bank closure 294, 297-302, 309, 310

      • banking crisis (1996) 269, 293-305, 310, 312

        • deterioration in bank soundness 293-5

        • estimated losses 302-3, 304

        • implementation action plan 321-3

        • resolution 313, 315

        • restructuring 295-7, 304-5

      • banking system 291-3

    • Mongolian Asset Realization Agency (MARA) 298, 299-300, 303, 305, 321-3

    • moral hazard 29-30, 49, 58, 101, 264

      • long-term 29-30, 51-2, 58, 62-3, 89

      • short-term 29, 49, 58, 61-2, 64-5, 67, 89

    • moral hazard cost (MHC) 61

    • moratorium 188-9

    • Morgan Stanley 233, 236, 238, 239, 363

    • nationalization 14, 19, 32, 33, 39, 104-6, 175

    • advantages and disadvantages of 105-6

    • Newbridge Consortium 233, 236, 257

    • Nigeria 150

    • nominal losses (haircuts) 9-10, 255

    • nonperforming loans (NPLs) 15-16, 100, 105, 112-14, 116-17, 223

      • classification of 354

      • Seoul Bank 230, 232, 245-8, 265, 351

    • NPA (Nonperforming Asset Management) Fund (Korea) 351, 353, 356, 366

      • financial performances of 363-5

    • open bank intervention 329, 330, 333-9

    • panic zone 44, 48, 49

    • payments system disruption 277

      • avoiding 53, 54, 56, 70-1, 86, 99-100

    • PDFCI Bank 338

    • Peace Bank (Korea) 235, 236

    • Perlin, G. 266

    • Peru 174-5, 175

    • Peruvian Deposit Insurance Fund 174-5

    • Philippines 203

    • Poland 175, 316

    • Postbank (Bulgaria) 275

    • privatization/reprivatization 61, 71-2, 87, 119, 213, 314

      • Seoul Bank 229, 233, 236, 258-63

    • prompt corrective action (PCA) 144, 168, 170, 180, 236

    • public funds, use of 121, 153-4, 155, 158, 235, 264, 319, 349

    • Public Funds Oversight Commission (PFOC) 259, 264

    • purchase and assumption (P&A) 14, 32-3, 106-10, 151, 234

      • advantages and disadvantages of 109-10

      • de novo P&A resolution 111

      • variations on 110-13

      • whole bank transaction 111-13

    • Radanasin Bank 213

    • Rapid Bond Underwriting Program 254-5

    • recapitalization 42-3, 60-1, 89, 153, 158, 223, 341-2

      • capital injections 32-3, 40, 42-3, 51, 97, 105, 116, 143-4

      • and interest rates 124-5

      • profit on 71-2

      • rehabilitating the assets 32, 33-4, 41, 42-3, 51

      • see also government bonds

    • Reconstruction Bank (RB) (Mongolia) 298, 299, 300-1, 302, 304, 305

    • regulatory threshold 192

    • resolution 19-20

      • maintaining confidence 99, 100, 117, 314, 341

      • policy principles 19-20, 98-9, 144, 145, 155-6

      • priority of claims 98-9, 149-50

      • strategies 21, 22, 32, 99-101

      • techniques 101-15

    • Resolution Trust Corporation (RTC) (US) 213, 214, 224

    • restructured loans 199-210, 214

      • bank accounting for 200-2

      • classification of 202-4, 206-9

      • country case studies 209-10

      • definition of 200

      • provisions for 204-5

      • role of banks and supervisors 205-6

    • restructuring process 4, 12-15, 19-20, 21-2, 148, 212-13

      • costs of 59-60

      • culture change 251-2

      • efficiency 56-7, 72, 88

      • government role 313-14

      • long-term benefits of 56-7

      • new business focus 249-51

      • new image 252-3

      • and weaknesses in legal system 14-15

      • see also asset management

    • retail banking 249-51, 265

    • risk aversion 50, 80

    • risk premium 47, 50, 59, 81

    • risk-taking 46-7, 50, 51, 62-3

    • Russia 27

    • Samsung Securities 260

    • Savings Bank (Lithuania) 284, 290

    • Savings Bank (Mongolia) 298, 300, 302, 304, 305

    • Savings Deposit Insurance Fund (SDIF) 369-71, 374-5, 376

    • Securum (Sweden) 213

    • Seoul Bank 229-66

      • balance sheet restructuring 245-8

      • before crisis 230-2

      • CEO selection 239

      • early retirement program (ERP) 244

      • employees 243-5, 252

      • Financial and Restructuring Agreement 238, 241, 258

      • governance issues 263-5

      • in IMF-supported program 232-4

      • Implementation Services Agreement 241

      • and Korean banking sector restructuring 234-6

      • and Korean government 233, 236-8, 261-2

      • management team selection 239-41

      • nationalization 229, 233

      • and non-performing loans 230, 232, 245-8, 265, 351

      • performance 254-8

      • rebuilding business 249-53

      • recapitalization 233, 236-8, 253-4, 258-9

      • redundancy program 243, 245

      • reprivatization 229, 233, 236, 258-63

      • restructuring process 239-54

      • retail banking 249-51, 265

      • role of board 262-3

      • sale of 258-61

      • staff training 245

      • System of Prompt Underwriting of Corporate Bonds 242

    • shareholders 13, 14, 97, 117, 144, 149, 287, 374-5

    • Shinhan Bank 236

    • Singapore 203

    • sovereign default 128-30

    • Spain 225

    • State Commercial Bank (Lithuania) 284, 286, 288, 317

    • State Savings Bank (Lithuania) 286, 288, 289, 318

    • State Savings Bank (SSB) (Bulgaria) 270, 272, 274, 275, 276, 282

    • state-owned banks 79, 115-16, 152

    • supervisory intervention 144-9, 233, 273

      • procedures 147-8

    • Sweden 8, 74-8, 224-5

    • systemic crises

      • causes 143-4

      • evolution of 43-52

      • features of 4-5, 24, 25-6

      • prevention 17-19, 22, 24

    • Tanzania 175

    • Taurobank 290, 318

    • tax incentives 35, 41, 51

    • Thailand 6, 7, 42, 203, 210, 216, 221, 222, 332

    • ‘too-big-to-fail’ (TBTF) 163, 165, 172, 180, 181, 342, 345

    • Trade and Development Bank (TDB) (Mongolia) 292, 294, 304, 305

    • transition countries

      • resolution attempts

        • implementation 310-12

        • lessons from 312-15

      • sources of banking sector distress 305-10, 315

      • see also Bulgaria; Lithuania; Mongolia

    • treasury bills 122

    • Turkey 150

      • asset management 16-17

      • banking crisis (2000-01) 6, 369-84

      • background and summary of 369-70

      • chronology of events 377-84

      • recapitalization 370-7

    • blanket guarantees 7, 13

    • public sector recapitalization program 370-7

      • agency in charge 370-1

      • assessment of banks 371-3

      • eligibility 371

      • procedures for raising capital 373-4

      • results 376-7

      • status of shares and rights 374-5

      • Tier 1 capital support 371, 374, 375

      • Tier 2 capital support 371, 376

      • restructured loans 203, 210

    • Turto Bank 287, 288, 320, 321

    • Uganda 150

    • United States 10, 166

      • asset disposal 214, 225

      • depositor access to funds 169-71, 175, 180

      • Savings and Loan crisis 101, 114-15, 224

    • Uruguay 11-12

    • Vakaru Bank 285, 287, 318

    • Venezuela 316

    • voluntary workout programs 246

    • Woobang Construction 232, 246-7, 248

    • Woori Finance Holding Company 236

    • World Bank 269, 316, 330

      • see also Global Bank Insolvency Initiative (GBII)

    • ZUNK bonds 274, 278, 282

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