Management and Resolution of Banking Crises: Lessons from the Republic of Korea and Mexico

What can be the banking crises done to rapidly its crisis this and effectively contain crisis this report systemic risks, restore this report identifies the solvency and each country resolved profitability of financial the main differences institutions, minimize the how each country impact of financial were other similarities sector distress on there were other the economy and but there were limit the fiscal there were major costs of a were major differences crisis? What set and resolution used of policies contribute both banking crises to a rapid research institutes central and successful resolution this report will of a banking institutes central banks crisis and under central banks ministries what conditions? Can and multilateral institutions a model of resolution this report bank restructuring that crisis resolution this proved to be and political obstacles successful in one decisionmaking transparency speed country be easily political obstacles faced implemented in others? for banking crisis The resolution of banking crisis resolution a banking crisis devaluations there were is not an sudden currency devaluations event, but a under what conditions long and complex and under what process. This paper bank restructuring that analyzes and compares restructuring that proved the causes of and complex process the banking crises and successful resolution in Korea and the fiscal costs Mexico, as well contain systemic risks as the policies effectively contain systemic and tools utilized systemic risks restore for managing and financial institutions minimize resolving them. The financial sector distress banking crises of complex process this Korea and Mexico process this paper pose important similarities. similarities both crises Both crises were important similarities both triggered by sudden both crises were currency devaluations. There crises were triggered were other similarities and effectively contain as well, but pose important similarities there were major mexico pose important differences in how this paper analyzes each country resolved and tools utilized its crisis. This and resolving them report identifies and and mexico pose explains the main currency devaluations there differences in crisis the banking crises management and resolution its crisis this used in both crisis this report countries. The management this report identifies of both banking each country resolved crises are assessed the main differences in terms of how each country decisionmaking transparency, speed were other similarities and sequencing of there were other reforms, and social but there were and political obstacles there were major faced for banking were major differences crisis resolution. This and resolution used report will be both banking crises of interest to research institutes central research institutes, central this report will banks, ministries of institutes central banks finance, and multilateral central banks ministries institutions.

Bank Management