The Challenges of Bankruptcy Reform

30 Pages Posted: 20 Apr 2016

See all articles by Elena Cirmizi

Elena Cirmizi

affiliation not provided to SSRN

Leora F. Klapper

World Bank; World Bank - Development Research Group (DECRG)

Mahesh Uttamchandani

World Bank - Investment Climate Advisory Services

Date Written: October 1, 2010

Abstract

The 2008 financial crisis was followed by a global economic downturn, credit crunch, and reduction in cross-border lending, trade finance, remittances, and foreign direct investment, which adversely affected businesses around the world. The consequent increase in the number of firm insolvencies in the financial and corporate sectors highlights the importance of efficient bankruptcy laws. This paper summarizes the theoretical and empirical literature on bankruptcy design, discusses the challenges of introducing and implementing bankruptcy reforms, and presents examples of how policymakers are trying to use the current economic downturn as an opportunity to engage in meaningful reform of the bankruptcy process.

Keywords: Bankruptcy and Resolution of Financial Distress, Debt Markets, Access to Finance, Deposit Insurance, Banks & Banking Reform

Suggested Citation

Cirmizi, Elena and Klapper, Leora F. and Uttamchandani, Mahesh, The Challenges of Bankruptcy Reform (October 1, 2010). World Bank Policy Research Working Paper No. 5448, Available at SSRN: https://ssrn.com/abstract=1694337

Elena Cirmizi (Contact Author)

affiliation not provided to SSRN

No Address Available

Leora F. Klapper

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-8738 (Phone)

HOME PAGE: http://econ.worldbank.org/staff/lklapper

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Mahesh Uttamchandani

World Bank - Investment Climate Advisory Services ( email )

1850 I St., NW, MSN I 9-900
Washington, DC 20433
United States
+1-202-458-5827 (Phone)
+1-202-522-3262 (Fax)

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