Abstract

The Legal Department and the Institute of the IMF held their ninth biennial seminar for legal advisors of IMF member countries’ central banks, and the papers published in this volume are based on presentations made by officials attending this seminar. The seminar covered a broad range of topics, including sovereign debt restructuring, money laundering and the financing of terrorism, financial system and banking supervision, conflicts of interest and market discipline in the financial sector, insolvency, and other issues related to central banking.

Title Page

Current Developments in Monetary and Financial Law

Volume 4

International Monetary Fund

Copyright Page

© 2005 International Monetary Fund

Cataloging-in-Publication Data

Current developments in monetary and financial law / Legal Department.—Washington, D.C. : International Monetary Fund.

v. : cm.

Includes bibliographical references.

ISBN 1-55775-796-8 (volume 1)

ISBN 1-58906-176-4 (volume 2)

ISBN 1-58906-334-1 (volume 3)

ISBN 1-58906-507-7 (volume 4)

1. Banking law—Congresses. 2. Monetary policy—Law and legislation—Congresses. 3. Financial policy—Law and legislation—Congresses. 4. Financial crises—Congresses. 5. Banks and banking—State supervision—Congresses. 6. Banks and banking, International—Congresses. 7. Bank and banking, Central—Congresses. 8. Economic and Monetary Union—Congresses. 9. Payment systems—Congresses. I. International Monetary Fund. Legal Dept. II. IMF Institute. K1066.C97 1999

92-16996 CIP

Price: $65.00

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Contents

  • Preface

  • I. DEVELOPMENTS IN INTERNATIONAL LAW AND AT THE INTERNATIONAL MONETARY FUND

  • 1 Current Legal Aspects of Monetary Sovereignty

    • François Gianviti

  • 2 The International Monetary Fund and Current Account Convertibility

    • Hector Elizalde

  • 3 The Obligation of Members to Provide Information to the International Monetary Fund Under Article VIII, Section 5: Recent Developments

    • Ross Leckow

  • 4 The International Monetary Fund’s Work on Financial Stability

    • Glenn Gottselig and Anne-Marie Gulde-Wolf

  • 5 Recognition of Governments in International Organizations, Including at the International Monetary Fund

    • Ramanand Mundkur

  • II. CENTRAL BANKING ISSUES

  • 6 The Three Pillars of Central Bank Governance: Toward a Model Central Bank Law or a Code of Good Governance?

    • Fabian Amtenbrink

  • 7 Central Bank Autonomy, Accountability, and Governance: Conceptual Framework

    • Tonny Lybek

  • 8 Interaction of Monetary and Fiscal Policies: Why Central Bankers Worry About Government Budgets

    • Paul Hilbers

  • 9 Varieties of Central Bank–Executive Relationships: International Evidence

    • Pierre L. Siklos

  • III. SOVEREIGN DEBT RESTRUCTURING

  • 10 Designing a Legal Framework to Restructure Sovereign Debt

    • Sean Hagan

  • 11 Inside the Black Box: How Should a Sovereign Bankruptcy Framework Be Structured?

    • Patrick Bolton and David A. Skeel, Jr.

  • IV. FINANCIAL SYSTEM SUPERVISION

  • 12 Guiding Principles on Regulation and Supervision of Microfinance

    • Robert Peck Christen, Timothy Lyman, and Richard Rosenberg

  • 13 Supervision of Financial Conglomerates in the European Union

    • Michael Gruson

  • 14 The Regulation and Supervision of Informal Remittance: Emerging Oversight Strategies

    • Samuel Munzele Maimbo

  • V. MONEY LAUNDERING AND FINANCING OF TERRORISM

  • 15 Reaching the White-Collar Terrorist: Operational Challenges

    • Jeff Breinholt

  • 16 Recent Developments in International Monetary Fund Involvement in Anti–Money Laundering and Combating the Financing of Terrorism Matters

    • Nadim Kyriakos-Saad, Cheong-Ann Png, and Jean-François Thony

  • VI. CONFLICTS OF INTEREST AND MARKET DISCIPLINE IN THE FINANCIAL SECTOR

  • 17 Can the Market Control Conflicts of Interest in the Financial Industry?

    • Eugene N. White

  • 18 Did Universal Banks Play a Significant Role in the U.S. Economy’s Boom-and-Bust Cycle of 1921–33? A Preliminary Assessment

    • Arthur E. Wilmarth, Jr.

  • 19 Lessons Learned from the Failure of Market Discipline and Regulatory Lapses: How to Prevent Future Busts

    • Lynn Turner

  • VII. BANKING AND TECHNOLOGY

  • 20 Nonbank Issuers of Electronic Money: Prudential Regulation in Comparative Perspective

    • Anita Ramasastry

  • 21 Role and Security of Payment Systems in an Electronic Age

    • Mark Fajfar

  • VIII. BANKINSOLVENCY

  • 22 Deposit Insurance and Bank Insolvency in a Changing World: Synergies and Challenges

    • Michael H. Krimminger

  • IX. LAW REFORM IN INDONESIA: A CASE STUDY

  • 23 Comments on the Judicial Reform Program in Indonesia

    • Daniel S. Lev

  • 24 Out-of-Court Corporate Debt Restructuring: The Jakarta Initiative Task Force

    • Ceda Ogada

  • 25 Responding to Currency Crises in Emerging Market Economies: The IMF in Indonesia, Korea, and Brazil

    • Shinji Takagi

  • X. APPENDIXES

  • I Main Guidelines on Central Bank Autonomy and Accountability

  • II The World Bank Operational Manual: Operational Policies—Dealings with De Facto Governments

  • III Proposed Features of a Sovereign Debt Restructuring Mechanism

    • Biographical Sketches

Preface

The Legal Department and the Institute of the International Monetary Fund (IMF) held their ninth biennial seminar for legal advisers of central banks of member countries from May 24 to June 4, 2004. As in previous years, presentations were made by officials of the IMF and other international organizations, officials of central banks and regulatory agencies, representatives of the private sector, lawyers, and scholars. The papers published in this volume are based on these presentations. The views they express by the authors should not be attributed to the IMF or to any institution with which the authors are affiliated.

The seminar covered a broad range of topics, which are reflected in this volume, including activities of the IMF, sovereign debt restructuring, money laundering and the financing of terrorism, financial system and banking supervision, conflicts of interest and market discipline in the financial sector, insolvency, and other issues relating to central banking. Given the widespread electronic availability of treaties, legislation, and other resource materials, appendixes included in this volume are limited to extracts that may not be easily attained otherwise and that will aid readers in their overall understanding of the ideas presented.

I wish to express our gratitude to a number of people for organizing the seminar and for their work on this publication. Roy Baban and Seng Chee Ho of the Legal Department played a key role in the seminar’s preparation and organization. Glenn Gottselig of the Legal Department and Marina Primorac of the External Relations Department provided editorial expertise. Deidre Davis, Luz Lemus, and Olga Penova provided administrative assistance with the seminar, and Sarah Underwood and Duangratai Jayanan were responsible for the composition of the publication.

Sean Hagan

The General Counsel

Director of the Legal Department