Honohan, Patrick, (2017), “Management and Resolution of Banking Crises: Lessons from Recent European Experience Patrick Honohan”, PIIE, January 2017
After almost a decade of contrasting and somewhat unpredictable policy responses to each succeeding bank failure, global policy for bank resolution has coalesced around a new approach.1 Replacing the seeming arbitrariness of earlier actions, the new international framework is designed to allow failing banks to be resolved smoothly without damaging interruptions to the payments and credit systems or imposing heavy fiscal costs.
This Policy Brief describes the changes and examines the European experience with banking crises over the past decade. It focuses on management and resolution policy in the countries of the euro area, with a view to identifying lessons about the likely policy response. It concludes by noting that despite improvements, more needs to be done to ensure the safety of European financial institutions and prevent future banking crises.
- Grossman, Richard, (2016), “Banking Crises”, Centre for Economic Policy Research, May
- Jungherr, Joachim, (2016), “Bank opacity and financial crises”, ADEMU WP 2016/002, February