Legal Optimization of Bank Resolution Tools:A Law and Economics Perspective
Resolution tools are pivotal for bank resolution and financial stability.The existing legislation lacks co-herence and specificity,posing challenges in achieving the legal values of efficiency and fairness,let alone alleviating their potential conflicts.Insights from law and economics offer three perspectives,aiding in under-standing the economic logic of resolution tools and refining rule design and implementation."Ex post view-point"focuses on the current efficiency of tools,emphasizing efficient post-crisis measures.Resolution tools can be categorized as"incremental,""transitional,"and"decremental,"each demanding specific rules for constraint or promotion."Ex ante viewpoint"emphasizes future incentives for fair distribution,requiring legis-lation to explicitly embed the sequence,baseline,and leverage considerations when deploying resolution tools based on the"source of funds."The conflicts between the first two viewpoints shall be reconciled to pursue the maximization of welfare.The implementation strategy of resolution tools should be adjusted based on the state of overall financial stability,and legislation needs to clarify the standards and conditions for activating and deactivating relevant resolution tools.
Bank ResolutionResolution ToolCommercial Bank LawFinancial Stability LawLaw and Economics
NETL
NSTL
万方数据
