Banking Law

Purpose

The purpose of this page is to provide examples of legal knowledge in certain key areas affecting World Bank operations in the banking sector. These areas are primarily legal and regulatory reform, bank restructuring and related policy aspects. This information highlights issues in order to assist practitioners in the sector.

Contents

Knowledge in this area, like the sector to which it relates, is evolutionary. This information will be continuously updated to reflect good practice and industry and technological developments.

The Bank aims to address current trends in the sector affecting banking law reform in developing markets. We will provide as they become available model legal texts as well as discussions of good practice in the areas of banking legal and regulatory reform and bank restructuring.

Resources

• A Legal Framework for Systemic Bank Restructuring(186K PDF), Margery Waxman. This paper sets out the legal framework used in systemic bank restructuring for the last ten years. It has examples from Sweden, Norway , Mexico, Korea, Thailand, Indonesia and the U.S. It describes various government strategies for handling a systemic bank crisis and the legal issues to be resolved. It covers the implications of regulatory forbearance, direct government support to failed banks, deposit guarantees, prompt corrective action, bank restructuring agencies and asset resolution corporations.