Author: Millard LongPublisher: World Bank Publications
ISBN:
Category : Bancos comerciales - Europa
Languages : en
Pages : 24
Book Description
`The Role of Commercial Banks in Enterprised Restructuring in Central and Eastern Europe
Author: Millard LongPublisher: World Bank Publications
ISBN:
Category : Bancos comerciales - Europa
Languages : en
Pages : 24
Book Description
On the Role of Banks in Enterprise Restructuring
Author: Sweder van WijnbergenPublisher:
ISBN:
Category : Banks and banking
Languages : en
Pages : 40
Book Description
The Role of Commercial Banks in Enterprise Restructuring in Central and Eastern Europe
Author: Millard LongPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
February 1995 In Central and Eastern Europe, banks are less active than planned in enterprise restructuring. Corporate restructuring is not normally a major part of commercial banking -- to ask banks to restructure their weakest clients is to direct attention away from lending to their strongest clients, which should be their core business. Enterprises are thus being restructured not by banks or government agencies but by brutal market forces. Many countries in Central and Eastern Europe assigned banks the responsibility for restructuring enterprises. Such restructuring had five components: * Triage of enterprises into three classes: viable, viable with debt relief, and nonviable. * Work with management of overindebted firms on a restructuring plan beforegranting debt relief. * Trigger the bankruptcy-liquidation process on nonviable firms. * Fund new investments needed as part of physical restructuring. * Provide corporate governance through representation on boards of directors. The initial information is that banks are performing these roles only to a limited degree. Signals are mixed on how vigorously governments want banks to pursue bankruptcy proceedings. With little opportunity to recover funds, banks are accepting even dubious restructuring programs from enterprises. But banks, except under government directive, are avoiding making new loans to loss-making enterprises. Together with a cut in fiscal subsidies, this is imposing a harder budget constraint on the enterprises. Nonviable enterprises seem more likely to starve to death than to die through execution. Corporate restructuring is not a normal part of commercial banking. To ask banks to restructure weak enterprises is to direct their attention away from what should be their core business: lending to strong enterprises. In fact, banks are under attack for being excessively conservative. Enterprise restructuring is taking place in Central and Eastern Europe driven by the disintegration of regional trade relations, sharply higher input prices, falling domestic demand, inflation, and other economic dislocations in combination with the harder budget constraint. Thus far the restructuring has been more downsizing than making new investments. This paper -- a product of the Financial Sector Policy and Institutions Unit, Financial Sector Development Department -- is part of a larger effort in the department to study the role of banks in restructuring.
On the Role of Banks in Enterprise Restructuring
Author: Octavian CărarePublisher:
ISBN:
Category : Bank loans
Languages : en
Pages : 50
Book Description
On the Role of Banks in Enterprise Restructuring
Author: S. J. G. WijnbergenThe Polish Experience with Bank and Enterprise Restructuring
Author: Fernando Montes NegretPublisher: World Bank Publications
ISBN:
Category : Bancos - Polonia
Languages : en
Pages : 54
Book Description
The Role of Commerical Banks in Enterprise Restructuring in Central and Eastern Europe
Author: Authorities' Roles and Organizational Issues in Systemic Bank Restructuring
Author: Mr.Peter NybergPublisher: International Monetary Fund
ISBN: 1451951515
Category : Business & Economics
Languages : en
Pages : 18
Book Description
Systemic bank restructuring must be the responsibility of one government authority only, with other authorities providing support and analytical help. The restructuring authority, whose tasks are enumerated and discussed, should preferably be a separate and temporary agency reporting to the finance ministry. Other solutions are possible but not recommended. Parliament should be involved in setting priorities and supervising the process, but political interference in restructuring operations should be avoided. Practical issues to consider include ensuring efficient cooperation between authorities; the arrangement of problem asset workout and recovery; and restructuring of politically sensitive enterprises.
Restructuring Banks and Enterprises
Author: Michael S. BorishPublisher: Washington, D.C. : World Bank
ISBN:
Category : Business & Economics
Languages : en
Pages : 86
Book Description
The Polish Experience with Bank and Enterprise Restructuring
Author: Fernando Montes-NegretPublisher:
ISBN:
Category : Electronic books
Languages : en
Pages :
Book Description
January 1997 Poland's program tackled simultaneously bank and enterprise restructuring and dealt decisively with the bad debt stock and flow problem with measures to improve incentives and institutional skills. Among transition economies, Poland was a pioneer in bank and enterprise restructuring. The main tool it used to implement the restructuring program was the 1993 law on financial restructuring of enterprises and banks, in an approach that encouraged banks to play a central role in enterprise restructuring. Bank recapitalization was linked to improvements in the banks' operating systems aimed at increasing efficiency and loan recovery. Poland's program to restructure banks and enterprises was successful because it was comprehensive. It tackled banks and enterprises at the same time, dealing both with the bad debt stock problem and the associated flow problem. It made assistance on the stock problem contingent on concrete actions to improve lending practices, with the prospect of possible privatization or liquidation. The lesson Poland's experience offers is that solving the stock problem through bank recapitalization is necessary but not sufficient. Bank recapitalization without measures to improve performance incentives and bank skills is likely to fail. Poland was also realistic about isolating too important to fail enterprises, providing special temporary budget support (after progress in key areas) that gave the program political viability. Poland took steps to modernize bank supervision and adopted measures to privatize banks and set up workout units showing genuine interest in changing banking practices. Poland's banking sector now resembles a modern market economy in structure. Commercial banks have a more than adequate capital base. Banking competition has increased and the sector seems relatively efficient and profitable. The experience of the workout departments has strengthened the skills needed for credit allocation and monitoring. Some positive results in enterprising restructuring have been linked to the banks' central role in enterprise governance, maintaining incentives to avoid unloading debt on the government, resolving conflicts between creditors to avoid triggering unnecessary liquidations, and preventing unnecessary bankruptcies. But it is unclear whether enterprises are on a healthy path or whether a second wave of bad loans may emerge, especially after a downswing in the business cycle. This paper - a product of the Financial Sector Development Department - is based in part on the findings of a broader study for the Operations Evaluation Department.