- Marc Quintyn, and David Hoelscher
- Published Date:
- August 2003
Managing Systemic Banking Crises
By a Staff Team Led by David S. Hoelscher and Marc Quintyn
INTERNATIONAL MONETARY FUND
© 2003 International Monetary Fund
Production: IMF Multimedia Services Division
Figures: Theodore F. Peters, Jr.
Typesetting: Alicia Etchebarne-Bourdin
Hoelscher, David S.
Managing systemic banking crises / by a staff team led by David S. Hoelscher and Marc Quintyn—Washington, D.C.: International Monetary Fund, 2003.
p. cm.—(Occasional paper, ISSN 0251-6365; 224)
- Includes bibliographical references.
- ISBN 1-58906-224-8
1. Banks and banking. 2. Financial crises. I. Quintyn, Marc. II. International Monetary Fund. III. Occasional paper (International Monetary Fund); no. 224.
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- I Overview
- II Systemic Crises: Causes, Cost, and Resolution
- III Crisis Containment
- IV Bank Restructuring
- V Asset Management and Corporate Debt Restructuring
- VI Bank Restructuring and Macroeconomic Policies
- I Costs of Banking Crises
- II Case Studies of Banking Crises
- 1. Bank Resolution Terminology
- 2. Typology of Banking Crises
- 3. Guiding Principles from Recent Systemic Banking Crises
- 4. Dealing with Bank Runs in Dollarized Economies
- 5. Indonesian Bank Closures—Doing It Wrong and Doing It Right
- 6. Deposit Freeze: The Case of Ecuador
- 7. Difficulties in the Identification of Bank Solvency
- 8. How to Assess the Financial Condition of Banks: The Case of Turkey
- 9. Elements of the Public Recapitalization Program in Turkey
- 10. Appropriate Design Features of a Centralized Asset Management Company
- 11. Good Practices for Corporate Debt Restructuring
- 12. Best Practices in Corporate Workouts
- 13. Depositor Reactions to Contract Changes
- Text Tables
- Appendix Tables
- AI.1. Fiscal Costs of Selected Banking Crises
- AI.2. Fiscal Costs of Selected Banking Crises: Sources and Country-Specific Information
- AII.1. Description of the System Before and After the Crisis
- AII.2. Crisis Outbreak and Containment: Financial and Monetary Measures
- AII.3. The Restructuring Phase: Judicial and Institutional Measures
- AII.4. The Restructuring Phase: Financial and Corporate Measures
- AII.5. Management of Impaired Assets
- AII.6. Exit from the Crisis
The following symbols have been used throughout this paper:
- … to indicate that data are not available;
- — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
- – between years or months (e.g., 2001–02 or January–June) to indicate the years or months covered, including the beginning and ending years or months;
- / between years (e.g., 2001/02) to indicate a fiscal (financial) year.
“n.a.” means not applicable.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This paper updates the International Monetary Fund’s work on general principles, strategies, and techniques for managing systemic banking crises in light of the new challenges faced in recent financial sector crises.
The project was carried out in the Monetary and Financial Systems Department (MFD) under the supervision of Stefan Ingves, Director of MFD, and Carl-Johan Lindgren. Both gave intellectual direction and clarity to the department’s work, drawing from their significant experiences in the field.
The material in this paper was originally prepared in late 2002 for the IMF’s Executive Board and was subsequently discussed by the Core Principles Liaison Group of the Basel Committee on Banking Supervision in April 2003. The final paper has further benefited from comments by Executive Directors and IMF staff.
The paper reflects in particular the contributions of the staff of MFD’s Systemic Banking Issues Division. The authoring team included Michael Andrews, Luis Cortavarría, Fernando Delgado, Olivier Frécaut, Dong He, Mats Josefsson, Yuri Kawakami, Marina Moretti, Alvaro Piris, Steven Seelig, and Michael Taylor. Silvia Ramirez provided valuable research assistance, and the paper would not have been completed without the excellent secretarial assistance of Sandra Solares. Gail Berre of the External Relations Department edited the paper and coordinated production of the publication.
The views expressed in this paper, as well as any errors, are the sole responsibility of the authors and do not necessarily represent the opinions of the IMF Executive Board or other members of the IMF staff.