The Challenges of Bankruptcy Reform

Cirmizi, Elena ; Klapper, Leora ; Uttamchandani, Mahesh

关键词: BANKRUPTCY LAWS;    BANKRUPTCY REFORMS;    CAPITAL REALLOCATION;    FINANCIAL CRISIS IMPACT;    INSOLVENCY;   

DOI  :  10.1596/1813-9450-5448
RP-ID  :  WPS5448

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The 2008 financial crisis was followedby a global economic downturn, credit crunch, and reductionin cross-border lending, trade finance, remittances, andforeign direct investment, which adversely affectedbusinesses around the world. The consequent increase in thenumber of firm insolvencies in the financial and corporatesectors highlights the importance of efficient bankruptcylaws. This paper summarizes the theoretical and empiricalliterature on bankruptcy design, discusses the challenges ofintroducing and implementing bankruptcy reforms, andpresents examples of how policymakers are trying to use thecurrent economic downturn as an opportunity to engage inmeaningful reform of the bankruptcy process.