Narrow Your Choices

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Europe > Switzerland

You are looking at 1 - 3 of 3 items for :

  • Type: Journal Issue x
  • IMF Staff Position Notes x
Clear All Modify Search
Cover IMF Staff Position Notes
Redesigning the Contours of the Future Financial System
Ms. Laura E. Kodres
and
Mr. Aditya Narain
This paper explores the private- and public-sector responses to the crisis and some of the probable outcomes. Aside from improved supervision of individual institutions, greater emphasis needs to be put on financial regulations that reflect the systemic nature of financial risks and the role that macroeconomic policies play. Global consistency of regulation and financial sector taxation will be essential to mitigate systemic risks, avoid unintended distortions, and help ensure a level playing field. This note suggests the key aspects of the future contours will likely be: ? Banks are expected to return to their more traditional function as stricter regulation will limit the risks and activities they can undertake. ? The nonbanking sector will likely have a greater competitive advantage—both in supplying credit and providing investors with nonbank services—and will thus grow. ? The perimeter of regulation will need to expand to take into account risks in the nonbank sector. ? Market infrastructure will be reinforced to protect investors and will need to provide simplicity and transparency to make risks clearer and the financial system safer. ? The global financial system is likely to be smaller and less levered than in the recent past, and could well be less innovative and dynamic, at least for a while.
Keywords:
SPN; functioning financial system; economic growth; IMF policy advice; credit risk; banking sector; banking system assets; market discipline; financial system assets; CDS market; accounting rule; market practice; Commercial banks; Systemic risk; Financial sector stability; Credit; Nonbank financial institutions; Global
Cover IMF Staff Position Notes
Policies to Address Banking Sector Weakness: Evolution of Financial Markets and Institutional Indicators
Mr. Ivan S Guerra
,
Mr. R. B. Johnston
,
Karim Youssef
, and
Mr. Andre O Santos
This paper reviews the impact of policies to address banking sector weaknesses through the first months of 2009. At the time of this assessment, central bank intervention had successfully addressed pressures on bank liquidity, but the underlying financial position of financial institutions, particularly the large complex financial institutions (LCFIs), remained precarious. Although Tier 1 ratios had been boosted through the capital injections, tangible common equity (TCE) remained at a critical level for most institutions. Asset quality was weakening, and credit spreads for LCFIs remained wide. Measures had not stemmed the market-driven deleveraging process, and lending surveys pointed to various levels of credit tightening in the United States, Europe, Switzerland, and the United Kingdom. The success of government support measures can be assessed by their impact on bank soundness indicators. Government support measures should have a positive effect on bank soundness by improving bank liquidity, profitability, capital adequacy, and asset quality.
Keywords:
SPN; market; commercial paper; asset; bank; liquidity facility; central bank; commercial paper issuance; asset quality; preferred shares; tax assets; market participant; market confidence; Credit; Commercial banks; Liquidity; Loans; Securities; Europe; Global
Cover IMF Staff Position Notes
The Economics of Bank Restructuring: Understanding the Options
Augustin Landier
and
Mr. Kenichi Ueda
Based on a simple framework, this note clarifies the economics behind bank restructuring and evaluates various restructuring options for systemically important banks. The note assumes that the government aims to reduce the probability of a bank’s default and keep the burden on taxpayers at a minimum. The note also acknowledges that the design of any restructuring needs to take into consideration the payoffs and incentives for the various key stakeholders (i.e., shareholders, debt holders, and government).
Keywords:
SPN; debt holder; default probability; asset sale; asset value; bank assets; preferred shares; equity holder; debt-for-equity swap; asset quality; asset guarantee; Stocks; Asset valuation; Asset management; Distressed assets; Securities