Cross-Border Cooperation in Bank Resolution: A Framework for Asia
Singapore Journal of Legal Studies, p.1-28, March 2016
28 Pages Posted: 11 Apr 2016 Last revised: 12 Apr 2016
Date Written: March 1, 2016
This paper identifies challenges to cross-border cooperation in Asia in the area of bank resolution and potential measures to enhance cooperation. In line with the consensus-based approach that is common in Asia, these measures include strengthening regulatory harmonisation and promoting convergence in supervisory practices through the use of non-binding guidelines. Drawing on the experience in the EU and the Trans-Tasman cooperation between Australia and New Zealand, the paper proposes that convergence-promoting functions be incorporated within existing institutions and considers the use of resolution colleges. In addition, acknowledging the preference in Asia for bilateral arrangements over multilateral arrangements, the paper suggests ways in which information sharing and recognition of foreign resolution action can be enhanced and draws on the experience of Singapore for this purpose.
Suggested Citation: Suggested Citation