TY  - JOUR
AU  - Claessens,Stijn
AU  - Klingebiel,Daniela
AU  - Laeven,Luc
TI  - Financial Restructuring in Banking and Corporate Sector Crises: What Policies to Pursue?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8386
PY  - 2001
Y2  - July 2001
UR  - http://www.nber.org/papers/w8386
L1  - http://www.nber.org/papers/w8386.pdf
N1  - Author contact info:
Stijn Claessens
Research Department
International Monetary Fund
700 19th Street N.W.
Washington, DC 20431
E-Mail: SClaessens@imf.org

Luc Laeven
Deputy Division Chief
International Monetary Fund
700 19th Avenue, NW
Washington, DC 20431
Tel: 202/623-9020
Fax: 202/623-4740
E-Mail: Llaeven@imf.org
AB  - We review the literature on resolving bank and corporate sector crises to identify government policies that affect the depth of a crisis and the ease and sustainability of recovery, and to analyze their fiscal cost. A consistent framework - including sufficient resources for loss-absorption and private agents facing the right framework of sticks and carrots - is the, although often missing key to successful bank and corporate restructuring. Sustainability of restructuring calls for deeper structural reforms, which often requires dealing with political economy factors up-front. Using data for 687 corporations from eight crisis countries, we find empirically that a package of specific resolution measures can help accelerate the recovery from a crisis. These policies, however, come with significant fiscal costs.
ER  -