Financial Institutions in Distress: Recovery, Resolution, and Recognition

Political boundaries are porous to finance, but financial regulation is not. This book explores the conundrum of cross-border transmission of distress and offers a response by drawing on and adding to the literatures on financial intermediation, regulation, and distress, and advocating for the creation of a model law that would address the full range of financial institutions and enable relevant authorities to cooperate.

Format: Hardback
Length: 464 pages
Publication date: 25 August 2023
Publisher: Oxford University Press

Political boundaries are frequently permeable to finance, financial intermediation, and financial distress. However, they are extremely resistant to financial regulation. When people living in a nation with a purchasing power deficit can access and utilize funds flowing in from a country with an abundance of such power, the residents of both countries may benefit. They may also benefit when institutions that engage in cross-border financial intermediation achieve economies of scale and are able to innovate, offering funds and services at lower costs.

However, inevitably, at least some of these institutions will occasionally act imprudently, some of the projects in which such funds are deployed may be unwise, and other such projects may suffer from unforeseen circumstances. As a result, a financial institution may experience distress in one country and may then transmit such distress to other countries in which it operates. The effectiveness of any response to such cross-border transmission of distress may depend on whether it is given due effect in both (or all) the territories in which the distressed financial institution operates. This situation presents a dilemma for policymakers, legislators, and regulators who wish to enable those within their jurisdiction to access the benefits of cross-border financial intermediation while being unable to make rules and regulations that would have effect outside that jurisdiction.

This book explores this dilemma and provides a response. It does so by drawing on and building upon the literatures on financial intermediation, regulation, and distress, as well as existing hard and soft laws and regulations. The book advocates for the creation of a model law that would encompass the full range of financial institutions, including insurance companies.

The model law would aim to strike a balance between facilitating cross-border financial intermediation and ensuring the stability and soundness of the financial system. It would provide a framework for regulating financial institutions and promoting fair competition while also addressing the risks associated with cross-border financial transactions.

The book would also address the issue of financial distress and provide a framework for resolving it in a cross-border context. It would consider the legal and regulatory implications of cross-border financial distress and explore the options available to policymakers, regulators, and financial institutions to address and mitigate such distress.

In conclusion, this book offers a comprehensive exploration of the conundrum

Political boundaries are frequently permeable to finance, financial intermediation, and financial distress. However, they are extremely resistant to financial regulation. When people living in a nation with a purchasing power deficit can access and utilize funds flowing in from a country with an abundance of such power, the residents of both countries may benefit. They may also benefit when institutions that engage in cross-border financial intermediation achieve economies of scale and are able to innovate, offering funds and services at lower costs.

However, inevitably, at least some of these institutions will occasionally act imprudently, some of the projects in which such funds are deployed may be unwise, and other such projects may suffer from unforeseen circumstances. As a result, a financial institution may experience distress in one country and may then transmit such distress to other countries in which it operates. The effectiveness of any response to such cross-border transmission of distress may depend on whether it is given due effect in both (or all) the territories in which the distressed financial institution operates. This situation presents a dilemma for policymakers, legislators, and regulators who wish to enable those within their jurisdiction to access the benefits of cross-border financial intermediation while being unable to make rules and regulations that would have effect outside that jurisdiction.

This book explores this dilemma and provides a response. It does so by drawing on and building upon the literatures on financial intermediation, regulation, and distress, as well as existing hard and soft laws and regulations. The book advocates for the creation of a model law that would encompass the full range of financial institutions, including insurance companies.

The model law would aim to strike a balance between facilitating cross-border financial intermediation and ensuring the stability and soundness of the financial system. It would provide a framework for regulating financial institutions and promoting fair competition while also addressing the risks associated with cross-border financial transactions.

The book would also address the issue of financial distress and provide a framework for resolving it in a cross-border context. It would consider the legal and regulatory implications of cross-border financial distress and explore the options available to policymakers, regulators, and financial institutions to address and mitigate such distress.

In conclusion, this book offers a comprehensive exploration of the conundrum that policymakers, legislators, and regulators face in enabling those within their jurisdiction to access the benefits of cross-border financial intermediation while being unable to make rules and regulations that would have effect outside that jurisdiction. By drawing on and building upon existing literatures on financial intermediation, regulation, and distress, as well as existing hard and soft laws and regulations, the book advocates for the creation of a model law that would encompass the full range of financial institutions, including insurance companies. The model law would aim to strike a balance between facilitating cross-border financial intermediation and ensuring the stability and soundness of the financial system. It would provide a framework for regulating financial institutions and promoting fair competition while also addressing the risks associated with cross-border financial transactions.

The book would also address the issue of financial distress and provide a framework for resolving it in a cross-border context. It would consider the legal and regulatory implications of cross-border financial distress and explore the options available to policymakers, regulators, and financial institutions to address and mitigate such distress.

In conclusion, this book offers a comprehensive exploration of the conundrum

Political boundaries are frequently permeable to finance, financial intermediation, and financial distress. However, they are extremely resistant to financial regulation. When people living in a nation with a purchasing power deficit can access and utilize funds flowing in from a country with an abundance of such power, the residents of both countries may benefit. They may also benefit when institutions that engage in cross-border financial intermediation achieve economies of scale and are able to innovate, offering funds and services at lower costs.

However, inevitably, at least some of these institutions will occasionally act imprudently, some of the projects in which such funds are deployed may be unwise, and other such projects may suffer from unforeseen circumstances. As a result, a financial institution may experience distress in one country and may then transmit such distress to other countries in which it operates. The effectiveness of any response to such cross-border transmission of distress may depend on whether it is given due effect in both (or all) the territories in which the distressed financial institution operates. This situation presents a dilemma for policymakers, legislators, and regulators who wish to enable those within their jurisdiction to access the benefits of cross-border financial intermediation while being unable to make rules and regulations that would have effect outside that jurisdiction.

This book explores this dilemma and provides a response. It does so by drawing on and building upon the literatures on financial intermediation, regulation, and distress, as well as existing hard and soft laws and regulations. The book advocates for the creation of a model law that would encompass the full range of financial institutions, including insurance companies.

The model law would aim to strike a balance between facilitating cross-border financial intermediation and ensuring the stability and soundness of the financial system. It would provide a framework for regulating financial institutions and promoting fair competition while also addressing the risks associated with cross-border financial transactions.

The book would also address the issue of financial distress and provide a framework for resolving it in a cross-border context. It would consider the legal and regulatory implications of cross-border financial distress and explore the options available to policymakers, regulators, and financial institutions to address and mitigate such distress.

In conclusion, this book offers a comprehensive exploration of the conundrum that policymakers, legislators, and regulators face in enabling those within their jurisdiction

Political boundaries are frequently permeable to finance, financial intermediation, and financial distress. However, they are extremely resistant to financial regulation. When people living in a nation with a purchasing power deficit can access and utilize funds flowing in from a country with an abundance of such power, the residents of both countries may benefit. They may also benefit when institutions that engage in cross-border financial intermediation achieve economies of scale and are able to innovate, offering funds and services at lower costs.

However, inevitably, at least some of these institutions will occasionally act imprudently, some of the projects in which such funds are deployed may be unwise, and other such projects may suffer from unforeseen circumstances. As a result, a financial institution may experience distress in one country and may then transmit such distress to other countries in which it operates. The effectiveness of any response to such cross-border transmission of distress may depend on whether it is given due effect in both (or all) the territories in which the distressed financial institution operates. This situation presents a dilemma for policymakers, legislators, and regulators who wish to enable those within their jurisdiction to access the benefits of cross-border financial intermediation while being unable to make rules and regulations that would have effect outside that jurisdiction.

This book explores this dilemma and provides a response. It does so by drawing on and building upon the literatures on financial intermediation, regulation, and distress, as well as existing hard and soft laws and regulations. The book advocates for the creation of a model law that would encompass the full range of financial institutions, including insurance companies.

The model law would aim to strike a balance between facilitating cross-border financial intermediation and ensuring the stability and soundness of the financial system. It would provide a framework for regulating financial institutions and promoting fair competition while also addressing the risks associated with cross-border financial transactions.

The book would also address the issue of financial distress and provide a framework for resolving it in a cross-border context. It would consider the legal and regulatory implications of cross-border financial distress and explore the options available to policymakers, regulators, and financial institutions to address and mitigate such distress.

In conclusion, this book offers a comprehensive exploration of the conundrum that policymakers, legislators, and regulators face in enabling those within their jurisdiction to access the benefits of cross-border financial intermediation while being unable to make rules and regulations that would have effect outside that jurisdiction. By drawing on and building upon existing literatures on financial intermediation, regulation, and distress, as well as existing hard and soft laws and regulations, the book advocates for the creation of a model law that would encompass the full range of financial institutions, including insurance companies. The model law would aim to strike a balance between facilitating cross-border financial intermediation and ensuring the stability and soundness of the financial system. It would provide a framework for regulating financial institutions and promoting fair competition while also addressing the risks associated with cross-border financial transactions.

The book would also address the issue of financial distress and provide a framework for resolving it in a cross-border context. It would consider the legal and regulatory implications of cross-border financial distress and explore the options available to policymakers, regulators, and financial institutions to address and mitigate such distress.

Weight: 954g
Dimension: 179 x 255 x 31 (mm)
ISBN-13: 9780192882516