VIII Taking Control of a Bank Under the Banking Law: Common Issues
  • 1 0000000404811396 Monetary Fund


In most countries, the corrective measures described in the foregoing must be administered to a bank within its existing governance structure. Bank owners retain their rights and bank managers remain in place. However, preserving the corporate structure of a bank imposes limitations on the scope of corrective measures that can be taken without the cooperation of the decision-making organs of the bank. If management or owners do not cooperate with the bank regulator in restructuring their bank, or if they are judged unable to do so, the bank regulator must use stronger medicine and take control of the bank, either directly or through a provisional administrator or receiver.