How to Accelerate Corporate and Financial Sector Restructuring in East Asia | Land Portal

Resource information

Date of publication: 
August 2012
Resource Language: 
ISBN / Resource ID: 
oai:openknowledge.worldbank.org:10986/11452
Copyright details: 
CC BY 3.0 Unported

Resolving systemic banking and corporate
distress is not easy. The large scale of the East Asian
financial crisis has made the task even more daunting in
Indonesia, the Republic of Korea, Malaysia, and Thailand.
Two years into the process, bank and corporate restructuring
is still a work in progress. Governments should act to
accelerate it. Besides adopting common policy prescriptions
- improving financial regulation, corporate governance, and
bankruptcy procedures and shoring up banks' capital
positions - governments could take three additional steps:
Set up competitive, privately managed specialized funds, to
hold nonperforming loans and depoliticize restructuring.
Allow auctions as an alternative to negotiations, to speed
debt restructuring. And allow employee ownership
participation schemes, to reduce workers' resistance to
changes in ownership.

Authors and Publishers

Author(s), editor(s), contributor(s): 

Claessens, Stijn
Djankov, Simeon
Klingebiel, Daniela

Publisher(s): 

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.

Data provider

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.

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