IDEAS home Printed from https://ideas.repec.org/a/pal/imfstp/v48y2001i1p3.html
   My bibliography  Save this article

Recapitalizing Banks with Public Funds

Author

Listed:
  • By Charles Enoch

    (International Monetary Fund)

  • Gillian Garcia

    (International Monetary Fund)

  • V. Sundararajan

    (International Monetary Fund)

Abstract

Recapitalizing banks in a systemic crisis is a complex medium-term process that requires significant government intervention and careful management at both the strategic and individual bank levels. This paper examines the range of operational and strategic issues involved and the institutional arrangements needed to foster an effective banking system restructuring, as well as maximize the returns on government investment. Recapitalization approaches have varied in the different mixes of direct capital injections and asset purchases and rehabilitation that countries choose. The choice of an appropriate mix is critical to minimizing the expected present value of government outlays net of recoveries. Copyright 2001, International Monetary Fund

Suggested Citation

  • By Charles Enoch & Gillian Garcia & V. Sundararajan, 2001. "Recapitalizing Banks with Public Funds," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-3.
    • Handle: RePEc:pal:imfstp:v:48:y:2001:i:1:p:3
    as

    Download full text from publisher

    File URL: http://www.imf.org/External/Pubs/FT/staffp/2001/01a/pdf/enoch.pdf
    File Function: main text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alfredo Schclarek & Jiajun Xu & Jianye Yan, 2023. "The maturity‐lengthening role of national development banks," International Review of Finance, International Review of Finance Ltd., vol. 23(1), pages 130-157, March.
    2. Metrick, Andrew, 2022. "Broad-Based Capital Injection Programs," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 4(1), pages 1-48, April.
    3. International Monetary Fund, 2013. "European Union: Publication of Financial Sector Assessment Program Documentation—Technical Note on Progress with Bank Restructuring and Resolution in Europe," IMF Staff Country Reports 2013/067, International Monetary Fund.
    4. Greg Caldwell, 2005. "An Analysis of Closure Policy under Alternative Regulatory Structures," Staff Working Papers 05-11, Bank of Canada.
    5. Oosterloo, Sander & de Haan, Jakob, 2004. "Central banks and financial stability: a survey," Journal of Financial Stability, Elsevier, vol. 1(2), pages 257-273, December.
    6. Rixtel, Adrian van & Wiwattanakantang, Yupana & ウィワッタナカンタン, ユパナ & Souma, Toshiyuki & 相馬, 利行 & Suzuki, Kazunori & スズキ, カズノリ, 2002. "Banking in Japan: Will "Too Big To Fail" Prevail?," CEI Working Paper Series 2002-16, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    7. Patroklos Patsoulis & Marios Psychalis & Georgios A. Deirmentzoglou, 2022. "Stability and Growth Pact: Too Young to Die, Too Old to Rock ‘n’ Roll," JRFM, MDPI, vol. 15(12), pages 1-12, December.
    8. Luc Laeven, 2011. "Banking Crises: A Review," Annual Review of Financial Economics, Annual Reviews, vol. 3(1), pages 17-40, December.
    9. Williams, Jonathan & Nguyen, Nghia, 2005. "Financial liberalisation, crisis, and restructuring: A comparative study of bank performance and bank governance in South East Asia," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 2119-2154, August.

    More about this item

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:imfstp:v:48:y:2001:i:1:p:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.