Effective and efficient management and sale of distressed assets helps minimize risks to financial stability and support economic growth. This paper summarizes the asset management and divestment experience of deposit guarantee funds in Serbia and Ukraine. It also provides some examples of practices from selected asset management companies in Western Europe. These could help inform policy decisions on the design of bank liquidation frameworks aimed at improving operational capacity. The examples suggest the following are key factors that contribute to successful distressed asset management and divestment: (i) sound governance practices and clear legal frameworks, (ii) comprehensive asset management and divestment strategies, (iii) active asset management and improvement of assets with safeguards in place to maximize return, (iv) transparent and prudent asset valuation, and (v) transparent and competitive asset sale.
Authors
- Citation
- “ World Bank . 2024 . Distressed Asset Management and Divestment Practices by Deposit Guarantee Funds in Serbia and Ukraine . © Washington, DC: World Bank . http://hdl.handle.net/10986/42241 License: CC BY-NC 3.0 IGO . ”
- Collection(s)
- Other Financial Sector Study
- Identifier externaldocumentum
- 34392882
- Identifier internaldocumentum
- 34392882
- Pages
- 44
- Published in
- United States of America
- Region country
- Serbia
- Report
- 193607
- Rights
- CC BY-NC 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by-nc/3.0/igo
- UNIT
- EFI-ECA-FCI-Finance-2 (EECF2)
- URI
- https://hdl.handle.net/10986/42241
- date disclosure
- 2024-10-11
- region administrative
- Europe and Central Asia
- theme
- Financial Infrastructure and Access,Financial Stability,Financial inclusion,Finance,Private Sector Development,Regulation and Competition Policy,Business Enabling Environment,Financial Sector Integrity,Financial Sector oversight and policy/banking regulation & restructuring
Files
Table of Contents
- Abbreviations 5
- Abstract 6
- Preface and Acknowledgements 7
- Executive Summary 8
- Chapter 10
- 1 10
- Introduction 10
- Chapter 12
- 2 12
- Asset sales: Serbia’s experience 12
- B. Governance and legal framework 13
- C. Asset sale strategy 14
- D. Management and improvement of assets 15
- E. Asset valuation 15
- F. Asset sales process 16
- G. Lessons learned 16
- Chapter 17
- 3 17
- Asset sales: Ukraine’s experience 17
- B. Governance and legal framework 18
- C. Asset sales strategy 18
- D. Management and improvement of assets 21
- E. Asset valuation 21
- F. Asset sales process35 22
- G. Lessons learned 25
- Chapter 26
- 4 26
- IMPORTANT ASPECTS OF ASSET MANAGEMENT AND DIVESTMENT 26
- A. Governance and legal framework 27
- B. Asset sale strategy 29
- C. Management and improvement of assets 31
- D. Asset valuation 32
- E. Asset sales process 34
- Chapter 36
- 5 36
- Key recommendations for agencies responsible for bank liquidation 36
- Annex 1. 37
- Overview of bank resolution and liquidation frameworks in CESEE71 37
- Annex 2. 39
- Asset management and divestment by NAMA, Sareb, and BAMC77 39
- B. ASSET SALES BY THE SPANISH ASSET MANAGEMENT COMPANY 40
- C. ASSET SALES BY THE BANK ASSETS MANAGEMENT COMPANY IN SLOVENIA 41
