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Purchase and Assumption

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  • International Association of Deposit Insurers

Abstract

There has been a range of resolution methods used by resolution authorities around the world, including liquidation and deposit payout, merger and acquisition (M&A), and purchase and assumption (P&A). This paper will attempt to shed greater light on the use of the P&A method among IADI members. According to the 2016 IADI Annual Survey, which drew 124 respondents, the P&A method has been used in 29 jurisdictions and is available as a resolution tool in 89 jurisdictions. A second survey conducted by the P&A Technical Committee in 2016 received responses from 41 IADI members, and 17 deposit insurers in 15 jurisdictions said that they had resolved one or more failed institutions using the P&A structure.

Suggested Citation

  • International Association of Deposit Insurers, 2019. "Purchase and Assumption," IADI Research Papers 19-11, International Association of Deposit Insurers.
    • Handle: RePEc:awl:respap:1911
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    References listed on IDEAS

    as
    1. Claire L. McGuire, 2012. "Simple Tools to Assist in the Resolution of Troubled Banks," World Bank Publications - Reports 12342, The World Bank Group.
    2. International Association of Deposit Insurers, 2013. "Enhanced Guidance for Effective Deposit Insurance Systems: Mitigating Moral Hazard," IADI Guidance Papers 13-05, International Association of Deposit Insurers.
    3. James, Christopher, 1991. "The Losses Realized in Bank Failures," Journal of Finance, American Finance Association, vol. 46(4), pages 1223-1242, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    deposit insurance; bank resolution;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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