부실 금융기관의 효율적 처리방식

An Optimal Resolution for the Failed Banks

A wave of bank failures and dramatic losses have occurred since late 1980s. This article considers whether there are some effective ways in handling the problem bank The first section of the article discusses several methods to resolve the problem banks. We also reviews some cases of major bank’s insolvencies and its experiences in handling them. Some methods exist for resolving a potential failure : (1) deposit payoffs (2) financially assisted purchased-and-assumption(P&A) transactions (3) direct assistance, which usually means making a subsidized loan to a troubled banks. The P&A and the deposit payoff have been the principal methods available to the bank supervision. The regulators tried to address the problems that led to the crisis and prevent its recurrence. They intended to reduce the costs of the troubled banks. Prompt corrective action can reduce regulatory forbearance by causing regulators to intervene early in problem banks. Prompt corrective action identifies a problem bank in need of intervention. Banks are classified according to their capital adequacy. Some evidence suggests that examiners have information that is superior to publicly available data. For example, the CAMEL ratings provide useful information on troubled banks. In fact, direct assistance has inappropriate effects on future incentives in that it benefits the shareholders and managers of the problem banks. One important principle is that the bank authority should minimize the costs of failure resolution. Also “the market discipline” should be implemented. The measures to promote sound banking should be central to the bank supervision.