Financial Stability Review
Financial Crisis Management Articles
2000
2005 2004 2003 2002 2001 2000 1999 1998
Crises
Prevention and Resolution - Two Aspects of Financial Stability
(102k)
(Issue 9, December 2000)
David Clementi, Deputy Governor,
Financial Stability,
Bank of England.
In this speech, delivered at The South Bank University Centre for Monetary and Financial Economics on 6 September 2000,the Deputy Governor focused on the Bank 's second core purpose of maintaining the stability of the financial system. In particular he discussed surveillance and two issues currently under debate. The first relates, in the context of the revision of the Basel Accord, to the aggregate capital in the banking system and the optimal level of bank capital. The second concerns the international financial architecture and the respective roles of the private and official sector in dealing with liquidity crises.
Collective
Action Problems and Collective Action Clauses
(168k)
(Issue 8, June 2000)
Liz Dixon and David Wall,
International Finance Division,
Bank of England
The inclusion of collective action clauses (CACs) in bond contracts could be a positive step towards improving crisis resolution procedures. CACs can help facilitate the restructuring of bonds, which are becoming an increasingly important borrowing instrument for emerging market economies (EMEs). Almost one-third of EME sovereign bond issues include CACs, and experience so far suggests that CACs may have played a useful role during some restructurings. Empirical evidence is mixed, but tends to indicate that, to date, CACs have not materially affected the cost of borrowing.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
