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Enoch, Charles, Gillian Garcia, and V. Sundararajan, 1999, “Recapitalizing Banks with Public Funds: Selected Issues,” IMF Working Paper 99/139, (Washington: International Monetary Fund)
Lindgren, Carl-Johan and others, 1999, Financial Sector Crisis and Restructuring: Lessons from Asia (Washington: International Monetary Fund)
Ingves, Stefan, and Goran Lind, 1997, “Loan Loss Recoveries and Debt Resolution Agencies: The Swedish Experiences,” in Charles Enoch and John Green (eds.), Banking Soundness and Monetary Policy (Washington: International Monetary Fund)
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Klingebiel, Daniela, 2000, “The Use of Asset Management Companies in the Resolution of Banking Crises: Cross-Country Experience,” World Bank Policy Research Paper No. 2284 (Washington: World Bank)
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Subsequent to the crisis, a government-owned centralized AMC, the Thai Asset Management Corporation, was set up in 2001 to purchase NPLs from open banks.
This was done to prevent associates of some of the failed banks from setting up private AMCs, which could have circumvented rules for pricing and prudent governance.
They could be personally sued by borrowers or potential purchasers who are unhappy with the decisions of the AMC and wish to apply pressure to management.
This was the case during the crisis. However, the more recently established government-owned AMC can purchase assets from open banks.
Consolidated supervision is necessary to prevent private financial institutions from using their AMC subsidiaries as a means to boost their capital positions artificially by transferring their assets to the AMCs at too high a price.