Building Better Bad Banks

Our project uses public asset management companies ('bad banks') as a window for studying the reasons and ways that politicians respond to financal crises. Our research has led us to also examine related issues such as financial crisis data quality and transparency, as well as the impact that federalism has on policy responses to financial crises.

We are based at The Fiscal Governance Centre at The Hertie School of Governance and are generously funded by the Deutsche Forschungsgemeinschaft. The project began in summer 2013 and will conclude at the end of 2018.

Papers

Bad Banks

• Statistical Agencies and Responses to Financial Crises: Eurostat, Bad Banks, and the ESM. West European Politics
• Bad Banks as a Response to Crises: When Do Governments Use Them, and Why Does Their Governance Differ? Working Paper
• How not to create zombie banks: Lessons for Italy from Japan Bruegel Policy Contribution

Measuring Financial Market Stress

• The Measurement of Real-Time Perceptions of Financial Stress: Implications for political science Forthcoming at the British Journal of Political Science

Political Institutions

• Who Decides? Resolving Failed Banks in a European Framework Bruegel Policy Note
• Letting German Banks Fail: Federalism and the decision to close troubled banks (with Sahil Deo and Christian Franz) Politische Vierteljahresschrift
• When All is Said and Done: Updating 'Elections, Special Interests, and Financial Crisis' Research and Politics
• Interpreting Fiscal Accounting Rules in the European Union Journal of European Public Policy

Financial Regulatory Transparency

• Does Banking Union Worsen the EU’s Democratic Deficit? The need for greater supervisory data transparency Bruegel Policy Note JCMS Mentioned in Der Standard
• Financial regulatory transparency: new data and implications for EU policy (with Mark Copelovitch) Bruegel Policy Contribution
• Financial Data Transparency, International Institutions, and Sovereign Borrowing Costs (with Mark Copelovitch) Accepted for publication at International Studies Quarterly
• Explaining Variation and Change in Supervisory Confidentiality in the European Union Accepted for publication at West European Politics

Authors

Mark Hallerberg teaches Public Management and Political Economy at the Hertie School of Governance. He also maintains an affiliation with the Political Science Department at Emory University, Atlanta, Georgia. He is the author of one book, co-author of a second, and co-editor of a third. He has published over twenty-five articles and book chapters on fiscal governance, tax competition, exchange rate choice, and European politics. He has held academic positions previously at Emory University, the University of Pittsburgh, and the Georgia Institute of Technology. He has also served as a visiting scholar at the University of Amsterdam, University of Bonn, University of Mannheim, and the University of Munich (all in economics departments). He has done consulting work for the Dutch Ministry of Finance, Ernst and Young Poland, the European Central Bank, the International Monetary Fund, the Organisation for Economic Cooperation and Development, and the World Bank.

Christopher Gandrud is a Economics lead at Zalando SE, Research Fellow at Harvard University, and a Lecturer in Quantitative International Political Economy at City, University of London. His research focuses on the international political economy of public financial and monetary institutions, as well as applied social science statistics and software development. His work has been published in peer reviewed journals including the Journal of Common Market Studies, Journal of Peace Research, Journal of European Public Policy, Review of International Political Economy, Political Science Research and Methods, and Journal of Statistical Software. He co-authored a number of pieces on European banking union for the Bruegel Policy Contribution series. He authored a book on reproducible research methods published by Chapman and Hall. He has been a post-doctoral fellow at the Hertie School of Governance, a Lecturer in International Relations at Yonsei University, and a Fellow in Government at the London School of Economics where in 2012 he completed a PhD in quantitative political science.

Tables

The following tables contain information we have gathered over the course of our research on asset management companies that are either owned by or were created by the public.

Updated: October 2017

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• Public AMCs
• Deposit Insurers
• Internal Bad Banks
Public Asset Management Companies and other public distressed asset purchase/disposal operations (from 1980)

Note: Deposit insurers with AMC operations are listed on a separate table.

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Country	Name/Link to Official Website	Began	Ended	Other Sources
Albania	Bank Asset Resolution Trust	1998	2005	World Bank (2003)
Algeria	Treasury	1990s	Unknown	De Vrijer (2005)
Argentina	Fondo Fiduciario de Capitalización Bancaria	1995	Unknown	de la Torre (1999)
Australia	South Australia Asset Management Corporation	1994	2012
Austria	HETA Asset Resolution	2014	Present
Austria	KA Finanz AG	2009	Present
Austria	Immigon Portfolioabbau	2015	Present
Belgium	Dexia	2011	Present	Dexia
Belgium	Royal Park Investments	2009	Present	Bloomberg (2013)
Bolivia	Bank of Bolivia	1995	Unknown	Jácome H. (2008)
Brazil	Program of Incentives to the Restructuring and Strengthening of the National Financial System (PROER)	1995	Present	Maia (1999), Goldfajn et al. (2003)
Brazil	Programme of incentives for the restructuring of the state public financial system (PROES)	1996	2002	Maia (1999)
Bulgaria	State Fund for Reconstruction and Development	1996	Unknown	Tang et al. (1999), Jotev (1998)
Colombia	Central de Inversiones	2000	Present	World Bank (2003)
China	Great Wall AMC	1999	Present	Bloomberg (2017a)
China	Orient AMC	1999	Present	Bloomberg (2017b)
China	Huarong AMC	1999	Present	Bloomberg (2017c)
China	Cinda AMC	1999	Present	Bloomberg (2017d)
China (Anhui Province)	Anhui Guohou Asset Management Co.	2014	Present	China Economic Net
China (Jiangsu Province)	Jiangsu Asset Management Co.	2014	Present	China Economic Net
China (Zhejiang Province)	Zhejiang Capital Management Co	2014	Present	China Economic Net
China (Guangdong Province)	GDF Asset Management Co.	2014	Present	China Economic Net
China (Shanghai Province)	Shanghai State-owned Assets Operation Co.	2014	Present	China Economic Net, Bloomberg (2017e)
Côte d'Ivoire	Unknown	1990s		Klingebiel (2000)
Czech Republic	Czech KonsolidačnÌ Bank (KOB)	1991	2001	Nitschovaá (1999), Czech National Bank (2003), Kreuzbergová (2006)
Czech Republic	Česká inkasní	1992	Present	Czech National Bank (2003)
Czech Republic	Česká finanční	1997	Present	Czech National Bank (2003)
Czech Republic	Konpo	2000	Unknown	Czech National Bank (2003)
Czech Republic	Czech Consolidation Agency (CKA)	2001	2007	National Bank of Slovakia (2005), iDNES (2007), Radio Praha
Denmark	Finansiel Stabilitet	2008	Present
Estonia	Social Bank Asset Recovery Agency	1995	1996	Barisitz (2002), Koivu (2002)
Finland	Arsenal	1993	2003	Jonung et al. (2009, 105-107)
France	Consortium de Réalisation	1995	2007	Le Monde (2006)
Germany	FMS Wertmanagement	2010	Present
Germany	Berlin Immbilien Holding (BIH)	2006	2012	Schäfer and Zimmermann (2009)
Germany	Erste Abwicklungsanstalt	2009	Present
Ghana	Non Performing Assets Recovery Trust	1990	1997	Klingebiel (2000), Antwi-Asare (2000)
Greece	ETBA Hellenic Industrial Development Bank	1995	Unknown	Frangakis (1998)
Greece	Hellenic Financial Stability Fund	2010	Present
Hungary	Hungarian Industrial Development Bank	1992	1993	Tang et al. (1999)
Hungary	MARK Magyar Reorganizációs és Követeléskezelő Zrt	2014	Present
Indonesia	Indonesian Bank Restructuring Agency (IBRA)	1998	2004	Laryea (2010), Harada and Ito (2005)
Ireland	National Asset Management Agency (NAMA)	2009	Present
Italy	Società per la Gestione delle Attività S.p.a.	1996	Present	Jassaud and Kang (2015)
Italy	Atlante	2016	Present	Bloomberg (2015)
Jamaica	Financial Sector Adjustment Company	1997	Present
Japan	Housing Loan Administration Corporation	1996	1999	Deposit Insurance Corporation of Japan
Japan	Resolution and Collection Bank	1996	1999	Deposit Insurance Corporation of Japan
Japan	Resolution Collection Corporation (RCC)	1999	Present	Deposit Insurance Corporation of Japan
Japan	The Second Bridge Bank of Japan	2004	2011	Deposit Insurance Corporation of Japan
Japan	Enterprise Turnaround Initiative Corporation	2009	2013	Deposit Insurance Corporation of Japan
Japan	Corporation for Revitalizing Earthquake-Affected Businesses	2012	Present	Deposit Insurance Corporation of Japan
Japan	Regional Economy Vitalization Corporation	2013	Present	Deposit Insurance Corporation of Japan
Kazakhstan	Rehabilitation Agency	1994	Unknown	Tang et al. (1999)
Kazakhstan	Agricultural Support Fund	1994	Unknown	Tang et al. (1999)
Kazakhstan	Exim Bank	1994	Unknown	Tang et al. (1999)
Kazakhstan	Distressed Asset Fund	2008	Present	IMF (2010), IFC (2012)
Kazakhstan	Distressed Asset Fund 2	2010	2012	World Bank (2012)
Kazakhstan	Problem Asset Fund	2012	Present	IFC (2012), Reuters (2017)
Korea, Rep.	Korean Asset Management Corporation (KAMCO)	1998	Present
Kyrgyz Republic	Debt Restructuring Agency	1996	Present	IMF (2003), National Bank of the Kyrgyz Republic, Tang et al. (1999)
Kyrgyz Republic	Kyrgyz Agricutlural Finance Corporation	1997	Unknown	Tang et al. (1999), Jeenbaeva (n.d.)
Lithuania	Turto Bankas	1996	Present
Macedonia	Bank Rehabilitation Agency	1994	Present	Tang et al. (1999)
Malaysia	Pengurusan Danaharta Nasional Burhad	1998	2005	Takatoshi and Yuko (2007)
Malaysia	Prokas	2006	Present
Mexico	Valuacion y Venta de Activos	1996		Calomiris, Klingebiel, and Laeven (2004)
Mexico	Direccion de Activos Corporativos	1997	Unknown	Calomiris, Klingebiel, and Laeven (2004)
Mongolia	Mongolian Asset Realization Agency (MARA)	1996	Unknown	Enoch, Gulde, and Hardy (2002)
Netherlands	Propertize	2013	Present	Reuters (2014)
Nicaragua	Liquidation Commission	1990s	1990s
Nigeria	Asset Management Corporation of Nigeria (AMCON)	2010	Present
Philippines	Asset Privatization Trust	1987	2001	Klingebiel (2000), Philippine Privatization and Management Office
Philippines	Privatization and Management Office (PMO)	2001	Present	Philippine Privatization and Management Office
Portugal	Parvalorem/Parpus/Parparticipadas	2010	Present	European Commission (2012)
Portugal	Banco Espírito Santo	2014	Present
Portugal	Banif	2016	Present	Financial Times (2015)
Romania	Banking Assets Resolution Agency (AVAB)	1999	2004	http://www.aneir-cpce.ro/
Romania	Authority for State Assets Recovery (AVAS)	2004	Present	http://www.aneir-cpce.ro/
Senegal	Unknown	1988	Unknown	Honohan and Klingebiel (2000)
Slovakia	KonsolidačnÌ Banka	1991	1993
Slovakia	Konsolidacna Banka (KBB)	1993	2002	Mecinger, Honohan and Klingebiel (2000)
Slovakia	Slovak Consolidation Agency (SKA)	1999	Present	National Bank of Slovakia (2005)
Slovenia	Bank Rehabilitation Agency (BRA)	1993	1997	Honohan and Klingebiel (2000), Mencinger
Slovenia	Bank Asset Management Company (BAMC) (Slovenian: DUTB)	2013	Present	OECD
South Africa	Residual Debt Services Ltd.	2016	Present	Bloomberg (2016)
Spain	La Sociedad de Gestión de Activos Procedentes de la Reestructuracioón Bancaria (Sareb)	2012	Present	Wall Street Journal (2012)
Sri Lanka	Unknown	1989	1993	Honohan and Klingebiel (2000)
Sweden	Securum	1992	1997	Jonung et al. (2009, 105-107)
Sweden	Retrieva	1993	1995	Yorulmazer
Switzerland	SNB StabFund	2008	Present	Swiss National Bank (2011), Aggarwal et al. (2012)
Taiwan	Financial Restructuring Fund	2000	Present
Tanzania	Unknown	1990s	1990s	Hanson (2004)
Thailand	Thai Asset Management Corporation (TAMC)	2001	Present	Bloomberg (2017e)
Uganda	Unknown	1990s	1990s	Hanson (2004)
United Kingdom	UK Asset Resolution	2010	Present	Aggarwal et al. (2012)
United Kingdom	Northern Rock Asset Management	2010	Present	Bloomberg (2017f)
United States	Federal Asset Disposition Association (FADA)	1985	1989	Davison (2005)
United States	Resolution Trust Corporation (RTC)	1989	1996	Davison (2005)
United States	Maiden Lane Transactions	2008	2012
Uruguay	Fondos de Recuperación de Patrimonio Bancari	1990s	1990s	Honohan and Klingebiel (2000)
Vietnam	Debts and Assets Trading Company (DATC)	2003	Present	Bloomberg (2017g)

Deposit Insurers that acquire and dispose of non-performing assets

Note: This list is not exhaustive.

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Country	Name/Link to Official Website	Began	Ended	Other Sources
Croatia	State Agency for Deposit Insurance and Bank Rehabilitation	1997	Present
Ecuador	Agencia de Garantía de Depoósitos	1998	Present	Halac and Schmukler (2004)
Japan	Deposit Insurance Corporation (DICJ)	1996	Present	DICJ, DICJ (2011)
Mexico	The Fund for the Protection of Bank Savings (FOBAPROA)	1996	1997	Calomiris, Klingebiel & Laeven (2004)
Spain	Deposit Guarantee Fund			Segura (2012), Banco de Espana
Turkey	Savings and Deposit Insurance Fund (SDIF)	1994	Present
United States	Federal Savings and Loan Insurance Corporation	1985	1989	Davison (2005)
United States	Federal Deposit Insurance Corporation	1996	Present

Bad Banks part of existing financial institutions

Note: This list is not exhaustive and includes both public and privately owned banks.

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Country	Name/Link to Official Website	Began	Ended	Other Sources
Finland	STS Bank	1993		Drees and Pazarbasioglu (1995)
France	Societe Generale	2008	Present	Aggarwal et al. (2012)
France	Natixis	2009	Present	Aggarwal et al. (2012)
Germany	Dresdner Bank	2002	2009	Aggarwal et al. (2012), Bloomberg (2017h)
Germany	HypoVerinsbank	2006	2009	Aggarwal et al. (2012)
Germany	HSH Nordbank	2009	Present	Aggarwal et al. (2012)
Germany	Bayern LB	2009	Present	Aggarwal et al. (2012)
Germany	Commerzbank (Portfolio Restructuring Unit)	2009	Present	Aggarwal e. al. (2012), Commerzebank(2011)
Germany	LB BW	2009	Present	Aggarwal et al. (2012)
Hungary	Risk Kft	1995	1998	Tang et al. (1999)
Italy	UniCredit	2008	Present	Aggarwal et al. (2012)
Sweden	Nackebro			Aslund (2009)
Sweden	Diligentia			Aslund (2009)
Thailand	Bangkok Bank of Commerce	1998	1999	BIS (1999)
United Kingdom	Royal Bank of Scotland	2009	Present	Aggarwal et al. (2012)
United States	Citibank	2008	Present	Aggarwal et al. (2012)