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The Low Usage Of Bankruptcy Procedures: A Cultural Problem? Lessons From Spain, Aurelio Gurrea-Martínez
The Low Usage Of Bankruptcy Procedures: A Cultural Problem? Lessons From Spain, Aurelio Gurrea-Martínez
University of Miami International and Comparative Law Review
While filing for bankruptcy does not seem appealing for any debtor regardless of the jurisdiction, the reluctance to use the bankruptcy system varies across countries. This article explores the underlying reasons and economic effects of the low usage of bankruptcy procedures in Spain, where the rate of business bankruptcies is one of the lowest in the world. Some authors have argued that the low usage of bankruptcy procedures in Spain is due to a “cultural” problem faced by Spanish entrepreneurs. According to this hypothesis, the lack of a “bankruptcy culture” makes Spanish entrepreneurs afraid to use the bankruptcy system. In …
Bank Resolution And Creditor Distribution: The Tension Shaping Global Banking – Part I: “External And Intra-Group Funding” And “Ex Ante Planning V. Ex Post Execution” Dimensions*, David Ramos, Javier Solana
Bank Resolution And Creditor Distribution: The Tension Shaping Global Banking – Part I: “External And Intra-Group Funding” And “Ex Ante Planning V. Ex Post Execution” Dimensions*, David Ramos, Javier Solana
University of Miami Business Law Review
Banking has drastically changed since the 2007-2009 financial crisis and its aftermath. Of all the reforms that impinge upon the ability of global banks to run their business, none is more consequential than the new frameworks on bank resolution, which try to end “too-big-to-fail.” Yet bank resolution’s “macro” goals, such as systemic stability, limitation of contagion, and avoidance of moral hazard, run in the face of insolvency law and the more “micro” principles underpinning it. Among the latter, none is more pervasive than the need for fairness between creditors, and between (and within) creditor classes, enshrined in the ranking and …