How to Accelerate Corporate and Financial Sector Restructuring in East Asia

Claessens, Stijn; Djankov, Simeon; Klingebiel, Daniela

How to Accelerate Corporate and Financial Sector Restructuring in East Asia

Resolving systemic banking and corporate distress is not easy. The large scale of the East Asian financial crisis has made the task even more daunting in Indonesia, the Republic of Korea, Malaysia, and Thailand. Two years into the process, bank and corporate restructuring is still a work in progress. Governments should act to accelerate it. Besides adopting common policy prescriptions - improving financial regulation, corporate governance, and bankruptcy procedures and shoring up banks' capital positions - governments could take three additional steps: Set up competitive, privately managed specialized funds, to hold nonperforming loans and depoliticize restructuring. Allow auctions as an alternative to negotiations, to speed debt restructuring. And allow employee ownership participation schemes, to reduce workers' resistance to changes in ownership.

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Bibliographic Details
Main Authors:	Claessens, Stijn, Djankov, Simeon, Klingebiel, Daniela
Language:	English
Published:	World Bank, Washington, DC 1999-11
Subjects:	ACCOUNTING, ASSET MANAGEMENT, ASSET MANAGEMENT COMPANIES, ASSET PRICE BUBBLE, ASSET RECOVERY, ASSETS, AUCTION, AUCTION PROCESS, AUCTION SCHEME, AUCTIONS, BALANCE SHEET, BALANCE SHEETS, BANK OF JAPAN, BANK RECAPITALIZATION, BANKING CRISES, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCY, BANKRUPTCY PROCEDURES, BANKS, CASH FLOWS, COMMON POLICY, CORPORATE CONTROL, CORPORATE GOVERNANCE, CORPORATE RESTRUCTURING, CREDIT COOPERATIVES, CREDIT DISCIPLINE, CREDITOR PROTECTION, CRISIS ECONOMIES, CROSS-COUNTRY EXPERIENCE, DEBT, DEBT RESTRUCTURING, DEBT SERVICING, DEPOSIT GUARANTEES, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, DEREGULATION, DISCLOSURE, EQUITY CAPITAL, EQUITY MARKETS, EXTENSIVE DEPOSIT GUARANTEES, FINANCIAL ASSETS, FINANCIAL CRISIS, FINANCIAL DISTRESS, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL MANAGEMENT, FINANCIAL REGULATION, FINANCIAL RESTRUCTURING, FORECLOSURE LAWS, FOREIGN MANAGEMENT, FOREIGN SALES, FRAUDULENT ASSETS, GAMBLING, GUIDELINES, INCENTIVE FRAMEWORK, INSOLVENCY, INSTITUTIONAL REFORM, INTEREST RATES, INVENTORY, LABOR UNIONS, LAND PRICES, LAWS, LIQUIDITY, LOAN CLASSIFICATION, LOAN LOSS PROVISIONS, MARKET VALUE, MATURITIES, MERGERS, MUTUAL FUNDS, NATIONALIZATION, NONBANK FINANCIAL INSTITUTIONS, NONPERFORMING LOANS, PAYOUT, PORTFOLIO, PORTFOLIOS, PRESENT VALUE, PROFITABILITY, PUBLIC DEBT, RECAPITALIZATION, REORGANIZATION, RETAINED EARNINGS, RETIREMENT, SAVINGS, SECURITIES, SHAREHOLDERS, STATE OWNERSHIP, STOCK MARKETS, SUBORDINATED DEBT, SUPERVISORY FRAMEWORK, SWAPS, TRANSPARENCY, VENTURE CAPITAL CORPORATE RESTRUCTURING, FINANCIAL SECTOR REFORM, BANKING DISTRESS, FINANCIAL CRISES, ECONOMIC CRISIS, INVESTMENT FUNDS, PARTICIPATION OF STAKEHOLDERS, EMPLOYEE OWNERSHIP, CORPORATE DEBT,
Online Access:	http://documents.worldbank.org/curated/en/1999/11/439479/accelerate-corporate-financial-sector-restructuring-east-asia https://hdl.handle.net/10986/11452
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