Chapter 5 examines the roles of public assistance and fiscal backstops in managing systemic banking crises in ASEAN. It discusses various measures—namely, lender of last resort, guarantees, recapitalisation, and troubled asset relief—and notes how they can exacerbate the financial trilemma when national authorities prioritise domestic interests. The chapter also considers the role of the rule of law, highlighting tensions between IMF-style institutional reforms and local societal priorities, as illustrated by Thailand's experience after the Asian financial crisis. It further evaluates government networks, focusing on the CMIM and AMRO as mechanisms to enhance coordination, ensure equal access to financial support, and facilitate information sharing. Finally, the chapter provides recommendations, including strengthening the CMIM’s capacity, expanding its tools for regional SIFI recapitalisation, and increasing the IMF-delinked portion of the CMIM funds to reduce stigma.

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Increasing Legal Cooperation in Bank Crisis Management—Implications for the Public Assistance and Fiscal Backstops in ASEAN

  • Wassamon Kun-amornpong

摘要

Chapter 5 examines the roles of public assistance and fiscal backstops in managing systemic banking crises in ASEAN. It discusses various measures—namely, lender of last resort, guarantees, recapitalisation, and troubled asset relief—and notes how they can exacerbate the financial trilemma when national authorities prioritise domestic interests. The chapter also considers the role of the rule of law, highlighting tensions between IMF-style institutional reforms and local societal priorities, as illustrated by Thailand's experience after the Asian financial crisis. It further evaluates government networks, focusing on the CMIM and AMRO as mechanisms to enhance coordination, ensure equal access to financial support, and facilitate information sharing. Finally, the chapter provides recommendations, including strengthening the CMIM’s capacity, expanding its tools for regional SIFI recapitalisation, and increasing the IMF-delinked portion of the CMIM funds to reduce stigma.