Bank resolution: why Asian regulators must act now

Author: Ashley Lee | Published: 11 Nov 2013
  • Because Asia largely avoided the worst of the 2008 global financial crisis, lawmakers and regulators have been less politically motivated to look towards new bank resolution regimes;
  • But Asia’s resolution regimes are seen as more fragmented than those in more developed financial markets such as the US and the UK;
  • Hong Kong, considered a global financial centre, is an example: it does not have a bank resolution regime. Any failed bank would be liquidated under its corporate liquidation process.

Although bank resolution has remained a key topic in the aftermath of the global financial crisis, solutions in Asia seem to be focused on local rather than international concerns.

Panelists at Latham & Watkins’ restructuring seminar in Hong Kong agreed that Asia was less impacted by the 2008 global financial crisis than other areas, although the default of Lehman Brothers’ structured notes, called mini-bonds, affected retail investors in Hong Kong...


 

 

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register