Carving Out Legacy Assets: A Successful Tool for Bank Restructuring?
In-Depth Analysis
15-03-2017
This briefing drafted under supervision of the Economic Governance Support Unit reviews the options for a separation of non-performing and other problematic assets from the main business of a bank. This separation is essential for bank rehabilitation, though secondary loan markets are illiquid, and plagued by problems in valuation and information sharing. Independent asset management companies are therefore needed, in particular as a tool in resolution. The legal framework for such institutions should now be prepared.
In-Depth Analysis
External author
Alexander Lehmann
About this document
Publication type
Keyword
- bank
- banking supervision
- BUSINESS AND COMPETITION
- consumer protection
- consumption
- economic geography
- economic policy
- ECONOMICS
- EU institutions and European civil service
- EU Member State
- European Banking Authority
- EUROPEAN UNION
- FINANCE
- financial institutions and credit
- financial market
- financial requirements
- free movement of capital
- GEOGRAPHY
- investment loan
- law of banking
- management
- monetary economics
- monetary policy
- public debt
- public finance and budget policy
- State aid
- TRADE