Asset management companies, non-performing loans and systemic crisis: A developing country perspective

Jackson, P. (1996) Protection and Bank Failures in the United Kingdom. London: Bank of England. Olson, G.N. (2000) Banks in Distress: Lessons from the American Experience of the 1980s. London: Kluwer. Lou, J. (2001) China's Troubled Bank Loans: Workout and Prevention. London: Kluwer. Heffernan, S. (2005) Modern Banking in Theory and Practice. Chichester, UK: Wiley. Campbell, A. (2008) Bank insolvency and the problem of non-performing loans. In: P.J. Omar (ed.) International Insolvency Law. Themes and Perspectives. Aldershot, UK: Ashgate, pp. 211–235. Beattie, V., Casson, P., Dale, R., McKenzie, G., Sutcliffe, C. and Turner, M. (2005) Banks and Bad Debts: Accounting for Losses in International Banking. Chichester, UK: Wiley. Basel Committee on Banking Supervision. (2002) Supervisory Guidance on Dealing with Weak Banks. Basel, Switzerland: Bank of International Settlements. He, D. (2004) The Role of KAMCO in Resolving Non-Performing Loans in the Republic of Korea. Washington: International Monetary Fund. Working Paper WP/04/172. Woo, D. (2000) Two Approaches to Resolving Nonperforming Assets during Financial Crises. Washington: International Monetary Fund. IMF Working Paper WP/00/33. Nwankwo, G.O. (1980) The Nigerian Financial System. London: Macmillan. Lewis, P. and Stein, H. (1997) Shifting fortunes: The political economy of financial liberalization in Nigeria. World Development 25 (1): 5–22. Stein, H., Ajakaiye, O. and Lewis, P. (eds.) (2002) Deregulation and Banking Crises in Nigeria. London: Palgrave. Agbonkpolor, T. (2010) Risk management and regulatory failures in banking: Reflections on the current banking crisis in Nigeria. Journal of Banking Regulation 11 (2): 146–155. Ezeoha, A. (2007) Structural effects of banking industry consolidation in Nigeria: A review. Journal of Banking Regulation 8 (2): 159–176. Central Bank of Nigeria. (2000) Guidelines for the Practice of Universal Banking in Nigeria. Abuja: Central Bank of Nigeria. Circular No. BSD/CO/CIR/VOL.1/10/2000 of 22 December 2000. Oluyide, O. (2009) Legal structure and universal banking in Nigeria. Journal of International Banking Law and Regulation 24 (4): 206–215. The Turner Review. (2009) A Regulatory Response to the Financial Crisis. London: Financial Services Authority, March. Staikouras, P. (2011) Universal banks, universal crises? Disentangling myths from realities in quest of a new regulatory and supervisory landscape. Journal of Corporate Law Studies 11 (1): 139–286. The de Larosière Group. (2009) The High-Level Group on Financial Supervision in the EU: Report; 25 February 2009. Brussels, Belgium: European Commission. Ciro, T. and Longo, M. (2009) The global financial crisis: Causes and implications for future regulation: Part 1. Journal of International Banking Law and Regulation 24 (12): 599–605. Ciro, T. and Longo, M. (2010) The global financial crisis: Causes and implications for future regulation: Part 1. Journal of International Banking Law and Regulation 25 (1): 9–18. Bruner, C.B. (2011) Corporate governance reform in a time of crisis. The Journal of Corporation Law 36 (2): 309–341. Salami, I. (2010) The financial crisis and a regional regulatory perspective for emerging economies in Africa. Journal of International Banking Law and Regulation 25 (3): 128–139. Sanusi, S.L. (2010) The Nigerian banking industry: What went wrong and the way forward. 26 February. http://www.bis.org/review/r100419c.pdf, accessed 9 July 2010. Kama, U. (2009) Banking sector crisis and resolution options in Nigeria. Bullion Publication of the Central Bank of Nigeria 34 (1): 7–18. Sanusi, S.L. (2009) Developments in the banking system in Nigeria. 14 August. http://www.bis.org/review/r090922b.pdf, accessed 4 August 2010. Honohan, P. (1997) Banking System Failures in Developing and Transition Countries: Diagnosis and Predictions. Basel, Switzerland: BIS. BIS Working Papers No. 39. Palma, G. (1998) Three and a half cycles of ‘mania, panic and (asymmetrical) crash’: East Asia and Latin America compared. Cambridge Journal of Economics 22 (6): 789–808. Allen, F. and Gale, D. (2000) Bubbles and crises. Economic Journal 110 (460): 236–255. Allen, F. and Gale, D. (2002) Understanding Financial Crises, Clarendon Lecture Series in Finance. Oxford, UK: Oxford University Press. Salami, I. (2009) The effect of the financial crisis on the Nigerian capital market: A proper regulatory response. Journal of International Banking Law and Regulation 24 (12): 612–618. Central Bank of Nigeria. (2006) Code of corporate governance for banks in Nigeria post consolidation, http://www.cenbank.org/OUT/PUBLICATIONS/BSD/2006/CORPGOV-POSTCONSO.PDF, accessed 1 May 2011. Okpara, J.O. (2011) Corporate governance in a developing economy: Barriers, issues, and implications for firms. Corporate Governance 11 (2): 184–199. Okpara, J.O. (2010) Perspectives on corporate governance challenges in a sub-Saharan African economy. Journal of Business and Policy Research 5 (1): 110–122. Otobo, E.E. (1997) Regulatory reform in support of privatization: Patterns and progress in Africa. African Journal of Public Administration and Management 8–9 (2): 25–50. Central Bank of Nigeria. (2010) Prudential Guidelines for Deposit Money Banks in Nigeria, 1 July 2010. Abuja, Nigeria: Central Bank of Nigeria. Banking Supervision Department/Financial Policy and Regulation Department. (2011) Supervisory Intervention Framework for Banks. Abuja, Nigeria: Central Bank of Nigeria. Alford, D. (2010) Nigerian banking reform: Recent actions and future prospects, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1592599, accessed 26 July 2010. Alford, D. (2011) Nigerian banking reform: Recent actions and future prospects, http://ngrguardiannews.com/index.php?option=com_content&view=article&id=49783:nigerian-banking-reform-recent-actions-and-future-prospects&catid=30:money-watch&Itemid=593, accessed 1 June 2011. Ayotte, K.M. and Skeel Jr, D.A. (2009) Bankruptcy or bailouts?, http://lsr.nellco.org/cgi/viewcontent.cgi?article=1273&context=upenn_wps, accessed 10 July 2010. Oluba, O. (2010) Nigerian bank CEO tenure limits: CBN's shift from laudable & sustainable corporate governance initiatives to controversial meddlesomeness. The Fronteira Post. Economic Policy & Financial Markets, 9 February. http://www.proshareng.com/admin/upload/reports/Nigerian%20Bank%20CEO%20Tenure%20Limits%20%20090210.pdf, accessed 26 July 2010. Osuji, O. (2010) Bank CEOs, tenure limit: Legality and regulatory issues, http://www.proshareng.com/, accessed 1 February 2010. Central Bank of Nigeria. (2009) Advertorial 18/08/2009, http://www.cenbank.org/Out/publications/pressRelease/GOV/2009/ADVERTORIAL_18082009.pdf, accessed 18 August 2009. Freixas, X., Loranth, G. and Morrison, A.D. (2007) Regulating financial conglomerates. Journal of Financial Intermediation 16 (4): 479–514. Goldstein, M. and Turner, P. (1996) Banking Crisis in Emerging Countries: Origin and Policy Options. Basle, Switzerland: Bank for International Settlement, Monetary and Economic Department. BIS Economic Papers No.46. Mishkin, F.S. (1996) Understanding Financial Crisis: A Developing Country Perspective. Washington DC: Annual World Bank Conference on Development Economics. International Accounting Standard Board, International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement, para. 59. Bank of England. (1978) The secondary banking crisis and the Bank of England's support operation. Bank of England Quarterly Bulletin, June. Foster, S.E. (2010) Too big to fail-too small to compete: Systemic risk should be addressed through antitrust law but such a solution will work only if it is applied on an international basis. Florida Journal of International Law 22 (1): 31–64. Hoggarth, G., Reidhill, J. and Sinclair, P. (2004) On the Resolution of Banking Crises: Theory and Evidence. London: Bank of England. Working Paper no. 229. Schwarcz, S.L. (2008) Systemic risk. Georgetown Law Journal 97 (1): 193–249. Diamond, D.W. and Dybvig, PH (1983) Bank runs, deposit insurance, and liquidity. Journal of Political Economy 91 (3): 401–419. Bliss, R.R. and Kaufman, G.G. (2007) U.S. corporate and bank insolvency regimes: A comparison and evaluation. Virginia Law & Business Review 2 (1): 143–177. LoPucki, L.M. and Doherty, J.W. (2007) Bankruptcy fire sales. Michigan Law Review 106 (1): 1–60. Emejo, J. (2010) Banks, CBN plan N1.5trn fund to acquire bad debts. Thisday, 22 July. http://www.thisdayonline.com/nview.php?id=178896, accessed 22 July 2010. Akogun, K. and Onu, E. (2010) FG, CBN to lose N878bn in purchased banks’ assets. Thisday 25 June, http://thisdayonline.com/nview.php?id=176666, accessed 25 June 2010. Oronsaye, S. (2010) Nigerians to bear the cost of bank bailout. Next 28 June. http://234next.com/csp/cms/sites/Next/Money/Finance/5585855-146/nigerians_to_bear_cost_of_bank.csp, accessed 28 June 2010. Central Bank of Nigeria. (2010) Press release: President signs AMCON Bill. 19 July. http://www.cenbank.org/Out/2010/pressrelease/gov/PRESIDENT%20GOODLUCK%20JONATHAN%20SIGNS%20AMCON%20BILL.pdf, accessed 20 July 2010. Idonor, D. (2010) Jonathan signs AMCON Bill into law. Vanguard 20 July. http://www.vanguardngr.com/2010/07/20/jonathan-signs-amcon-bill-into-law/, accessed 20 July 2010. Archibong, E. (2010) Jonathan signs bank rescue law. Next 20 July. http://234next.com/csp/cms/sites/Next/Home/5596268-146/story.csp, accessed 20 July 2010. Brunnermeier, M.K. (2008) Deciphering the liquidity and credit crunch 2007–08. Journal of Economic Perspectives 23 (1): 77–100. Myers, S.C. (1977) Determinants of corporate borrowing. Journal of Financial Economics 5 (2): 147–175. Agwuegbo, A. (2010) Appropriate penalties will tighten loose ends in MFBs’ operation, CBN. Vanguard 19 July. http://www.vanguardngr.com/2010/07/19/appropriate-penalties-will-tighten-loose-ends-in-mfbs%E2%80%99-operation-cbn/, accessed 19 July 2010. Punch. (2010) Microfinance banks want piece of AMCON's action. 24 July, http://www.punchng.com/Articl.aspx?theartic=Art20100724428112, accessed 24 July 2010. Klingebiel, D. (2000) The Use of Asset Management Companies in the Resolution of Banking Crisis: Cross-Country Experiences. Washington: World Bank. World Bank Policy Research Working Paper 2284. Nattrass, R. (2010) Cross-border intra-group transfers: Too big to ignore? Journal of Banking and Financial Law 25 (5): 300–311. Basel Committee on Banking Supervision. (2006) Sound Credit Assessment and Valuation for Loans. Basel, Switzerland: Bank for International Settlements. Central Bank of Nigeria. (2011) Guidelines for the use of AMCON bonds in CBN operations. 8 April 2011, http://www.cenbank.org/OUT/2011/CIRCULARS/FMD/GUIDELINES%20FOR%20THE%20USE%20OF%20AMCON%20BONDS%20IN%20CBN%20OPERATIONS_.PDF, accessed 1 June 2011. United Nations Conference on Trade and Development. (2009) Investment policy Review Nigeria. New York and Geneva: United Nations. Anaba, I. (2010) Union Bank: Shareholders ask court to stop Sanusi. Vanguard 12 July, http://www.vanguardngr.com/2010/07/12/union-bank-shareholders-ask-court-to-stop-sanusi/, accessed 12 July 2010. Ebosele, M. and Nwannekanma, B. (2011) Shareholders fault CBN over plans to liquidate undercapitalised banks. The Guardian 1 June, http://ngrguardiannews.com/index.php?option=com_content&view=article&id=49887:shareholders-fault-cbn-over-plan-to-liquidate-under-capitalised-banks&catid=1:national&Itemid=559, accessed 1 June 2011. Emakpe, G. (2010) Shareholders sue CBN over plans to sell four banks. Next 20 August, http://234next.com/csp/cms/sites/Next/Home/5608998-146/shareholders_sue_cbn_over_plans_to.csp, accessed 20 August 2010. Olokor, F. (2010) AMCON Act: Shareholders’ group sue FG, CBN, N’Assembly. The Punch 26 August, http://www.punchng.com/Articl.aspx?theartic=Art201008263244087, accessed 26 August 2010. Soniyi, T. (2010) Shareholders in court over sale of troubled banks. Thisday 20 August, http://thisdayonline.com/nview.php?id=181059, accessed 20 August 2010. Obasola, K. (2011) Court stops CBN from selling intercontinental bank. The Punch 1 June, http://www.punchng.com/Articl.aspx?theartic=Art201106013234840, accessed 1 June 2011. Ogidan, A., Okwe, M. and Mbamalu, M. (2011) CBN gives banks date to recapitalise or face liquidation. The Guardian 31 May, http://ngrguardiannews.com/index.php?option=com_content&view=article&id=49766:cbngives-banks-date-to-recapitalise-or-face-liquidation&catid=1:national&Itemid=559, accessed 31 May 2011. Papaikonomou, V.I. (2010) Credit rating agencies and global financial crisis: Need for a paradigm shift in financial market regulation. Studies in Economics and Finance 27 (2): 161–174. Oyinlola, A. (2010) CBN, credit bureaux and banks. The Guardian 19 July, http://www.guardiannewsngr.com/index.php?option=com_content&view=article&id=17328:cbn-credit-bureaux-and-banks&catid=38:columnists&Itemid=615, accessed 19 July 2010. Dziobek, C.H. (1996) Regulatory and Tax Treatment of Loan Loss Provision. Washington DC: International Fund. IMF Papers on Policy Analysis and Assessment 96/6. Banks and Other Financial Institutions Act 1991, Section 20(1). Failed Banks (Recovery of Debts and Financial Malpractices) Act 1994, Section 23. Haque, F., Arun, T. and Kirkpatrick, C. (2011) The political economy of corporate governance in developing economies: The case of Bangladesh. Research in International Business and Finance 25 (2): 169–182. Review of newspaper reports on bank debtors Q1 2011. (2011) http://www.scribd.com/doc/54261975/Review-of-Q1-2011-Coverage-of-Bank-Debtor-Issues, accessed 1 May 2011. Johnson, S., Boone, P., Breach, A. and Friedman, E. (2000) Corporate governance in the Asian financial crisis. Journal of Financial Economics 58 (1–2): 141–186. Rajan, R. and Zingales, L. (1998) Which capitalism? Lessons from the East Asian crisis. Journal of Applied Corporate Finance 11 (3): 40–48. Choi, W. and Cho, S.H. (2003) Shareholder activism in Korea: An analysis of PSPD's activities. Pacific-Basin Finance Journal 11 (3): 349–363. SaharaReporters. (2010) Michael Aondoakaa ‘unfit’ to remain SAN, says CDHR in high-powered petition. 20 July, http://saharareporters.com/real-news/sr-headlines/6596-michael-aondoakaa-unfit-to-remain-san-says-cdhr-in-high-powered-petition.html, accessed 20 July 2010. Ogbonna, A. (2010) How AMCON will clean up N2.3trn banks’ toxic assets. Daily Sun 26 July, http://www.sunnewsonline.com/webpages/news/businessnews /2010/july/26/bussines-26-2010-001.htm, accessed 26 July 2010. Oronsaye, S. (2010) Regulators review margin lending guidelines. Next 19 July, http://234next.com/csp/cms/sites/Next/Home/5596186-146/regulators_review_margin_lending_guidelines_.csp, accessed 19 July 2010. Alo, O. (2007) Corporate governance in Nigeria: An overview. Bullion Publication of the Central Bank of Nigeria 31 (3): 1–6. Beck, T., Demirgue-Kunt, A. and Levine, R. (2006) Bank supervision and corruption in lending. Journal of Monetary Economics 53 (8): 2131–2163. Caprio, G., Laeven, L. and Levine, R. (2007) Governance and banks valuation. Journal of Financial Intermediation 16 (4): 584–617. Kama, U. and Chuku, C. (2009) Corporate governance of banks in Nigeria: Determinants of boards of directors’ effectiveness. Central Bank of Nigeria: Economic and Financial Review 47 (1): 17–43. Nieto, M.J. and Wall, L.D. (2006) Preconditions for a successful implementation of supervisors’ prompt corrective action: Is there a case for a banking standard in the EU? Journal of Banking Regulation 7 (3/4): 191–220. As the recent English case of William Hare Limited v Shepherd Construction Limited and CR Reynolds (Construction) Limited [2010] EWCA Civ. 283 demonstrates. Baird, D.G. (2004) The new face of chapter 11. American Bankruptcy Institute Law Review 12 (1): 69–99. Dunlop v Selfridge (1915) AC 847. Collins, L., Morse, C.G.J., McClean, D., Briggs, A., Harris, J. and McLachlan, C. (eds.) (2009) Dicey, Morris & Collins Conflict of Laws 14th Ed. London: Sweet & Maxwell, Part 5, Rules, pp. 121–122. Brownbridge, M. (1998) The Causes of Financial Distress in Local Banks in Africa and Implications for Prudential Policy. Geneva, Switzerland: UNCTAD. UNCTAD/OSG/DP/132.