Overview

This book analyses the legal regimes governing bank crisis management in the EU, UK, and US, discussing the different procedures and tools available as well as the regulatory architecture and the authorities involved. Building on a broad working definition of ‘bank crisis management’ and referring to several cases, the book explores the techniques and approaches employed by the authorities to deal with troubled banks on both sides of the Atlantic. The legal analysis distinguishes between procedures and tools aimed at liquidating the bank in crisis vis-à-vis those aimed at restructuring. In this regard, attention is paid to the rules allowing for the use of public money in handling banks in trouble as well as to the role that deposit insurance schemes can play. Considerations on the impact on banks of the current crisis provoked by the COVID-19 pandemic are advanced, primarily focusing on the expected surge of non-performing loans as well as on ways to effectively manage these assets. The book approaches these issues from a comparative law perspective, providing law and economics considerations and focusing on strengths and drawbacks of the rules currently in force. The book advances policy considerations as well as reform proposals aiming at enhancing the legal regimes in force, with particular reference to the Consultation promoted in 2021 by the European Commission on the adoption of a new bank crisis management and deposit insurance framework in the Union.

Full Product Details

Author:   Marco Bodellini (University of Bergamo, Italy) ,  John Linarelli (Touro College) ,  Teresa Rodriguez de Las Heras Ballell (University Carlos III of Madrid Spain)
Publisher:   Bloomsbury Publishing PLC
Imprint:   Hart Publishing
Dimensions:   Width: 15.60cm , Height: 2.50cm , Length: 23.40cm
Weight:   0.454kg
ISBN:  

9781509961344

ISBN 10:   1509961348
Pages:   232
Publication Date:   22 February 2024
Audience:   Professional and scholarly ,  College/higher education ,  Professional & Vocational ,  Tertiary & Higher Education
Format:   Paperback
Publisher's Status:   Active
Availability:   Manufactured on demand  
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Table of Contents

1. International Bank Crisis Management: Framing the Key Definitions and Drawing the Perimeter of the Analysis I. Introduction II. Bank Crisis Management: Framing the Key Definitions III. Other Relevant Definitions IV. Jurisdiction-Specific Definitions V. The Perimeter of the Analysis 2. The Bank Supervisory and Crisis Management Architecture in the EU, UK and US I. Introduction II. The European Banking Union III. The UK Bank Supervisory and Crisis Management Architecture IV. The US Bank Supervisory and Crisis Management Architecture 3. The First Lines of Defence: Bank Capital and Early Intervention Measures I. Introduction II. The Concept of Capital and the Rationale behind Minimum Bank Capital Requirements III. Capital Requirements and the Role of the Basel Committee on Banking Supervision IV. The Adoption of Basel I V. The Adoption of Basel II VI. The Adoption of Basel III VII. The Adoption of Basel IV VIII. Early Intervention Measures IX. The Effectiveness of Capital and Early Intervention Measures as First Lines of Defence 4. The Crisis of Non-Systemic Institutions: Bank Insolvency Regimes I. Introduction II. The New EU Regime and its Weaknesses III. Towards the Establishment of a New EU Harmonised Bank Insolvency Regime Inspired by the Italian, UK and US Frameworks and Experiences IV. The Italian Legal Framework V. Compulsory Administrative Liquidation under Italian Law VI. Bank Liquidation and the EU State Aid Framework: The So-called Liquidation Aid VII. The UK Regime VIII. The US Regime IX. Receivership X. The FDIC Strategies XI. Concluding Remarks 5. The Crisis of Systemic Institutions: Resolution and Orderly Liquidation Authority I. Introduction II. Resolution in the EU III. The Resolution Tools IV. Bail-in V. Resolution Funds VI. The Provision of Public Funds in the Context of Resolution and the Interaction between the Resolution Regime and the State Aid Framework VII. Impediments to Resolvability VIII. Resolution within the Banking Union IX. The UK Regime X. The US Regime: The Orderly Liquidation Authority XI. Concluding Remarks 6. Deposit Guarantee Schemes I. Introduction II. The Functions Performed by Deposit Guarantee Schemes in Bank Crises III. The Interplay between the Legislation on DGSs and the State Aid Regime IV. The Key Contributions of DGSs in Handling Bank Crises V. The General Court of the European Union and the Court of Justice of the European Union Judgments in the Banca Tercas Case VI. The Current Legal Constraints to DGSs’ Optional Interventions in Bank Crises VII. Deposit Insurance in the US VIII. A Limited-Scope Reform Proposal to Allow DGSs to Play a Leading Role in Bank Crises 7. The Legacy of the COVID-19 Crisis: The Non-Performing Loan Problem I. Introduction II. Non-Performing Loans III. How to Tackle the Non-Performing Loan Problem: Asset Management Companies IV. Types of NPLs to Transfer V. Transfer Price VI. Capital and Funding Structure and Governance Arrangements VII. Concluding Remarks 8. Conclusions

Reviews

This book presents a timely analysis of bank crisis management measures at various stages. It is a must-read for those who wish to grasp a full picture of what tools could be applied in a banking crisis. -- Shuai Guo * International Insolvency Review *

This book presents a timely analysis of bank crisis management measures at various stages. It is a must-read for those who wish to grasp a full picture of what tools could be applied in a banking crisis. --Shuai Guo, International Insolvency Review

Author Information

Marco Bodellini is Lecturer in Banking and Financial Law at the University of Bergamo, Italy, and Research Scientist in Sustainable Finance Law at the House of Sustainable Governance & Markets, University of Luxembourg.

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