Bank Failure and Resolution

The stability of the banking sector is crucial to economic growth and financial system integrity. This course explores the causes and consequences of bank failures, the role of regulatory and supervisory authorities in maintaining financial stability, and the resolution options available to address distressed institutions. Students will gain insight into early warning systems, distress resolution mechanisms, and failure resolution strategies such as mergers, acquisitions, and liquidation. 

Learning Outcomes:

By the end of this course, participants will be able to:

• Understand the causes and impact of bank failures and their implications for financial stability and economic growth.
• Analyze distress resolution strategies such as financial assistance, technical interventions, and recapitalization.
• Evaluate failure resolution options, including purchase & assumption, bridge banks, and liquidation.
• Assess the role of regulatory authorities in supervising banks and mitigating risks associated with financial distress.
• Apply early warning system models to predict and prevent banking failures using key financial indicators.