Prudential, Pragmatic, and Prescient, Reform of Bank Resolution Schemes

摘要

This article examines current initiatives in respect of bank financial distress in response to the 2008-2009 financial crisis, suggesting that there is considerably more work to be undertaken before bank regulatory oversight, bank corporate governance, and bank resolution regimes have the appropriate preventive safeguards, governance, and timely, efficient and fair responses to bank financial distress. The corporate governance of banks and other financial institutions differs from the governance of corporations because of prudential regulation, banks' significance to the financial system, the different nature of stakeholders with investments at risk, and the existence of deposit insurance. The article offers a number of policy options in respect of how banks and other financial institutions could enhance their prudential, prescient, and pragmatic oversight and governance in a way that protects creditors, deposit holders, and other stakeholders, as well as the public interest in a healthy and sustainable financial sector.