{"title":"Regulator-initiated corporate debt restructuring: Evidence from Bangladesh","authors":"Saibal Saha Sunny , Cheng-Tao Tang","doi":"10.1016/j.iimb.2022.07.002","DOIUrl":null,"url":null,"abstract":"<div><p>Prior research reports that corporate debt restructuring can increase the stability of the participating bank by inflating the provision of restructured loans. This study evaluates how the stability of Bangladeshi commercial banks has changed following the implementation of the regulator-initiated corporate debt restructuring (RCDR) policy. Our comprehensive bank-level analysis reveals that debt restructuring has led to a reduction in non-performing loans (NPLs) and the provision of participating banks; however, these banks continue to experience lower stability after the policy period. This study provides a new and important insight into the debate on the effectiveness of debt restructuring on bank performance.</p></div>","PeriodicalId":46337,"journal":{"name":"IIMB Management Review","volume":"34 2","pages":"Pages 153-167"},"PeriodicalIF":1.7000,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0970389622000477/pdfft?md5=b7400ac0854bbab5f9ac9da516ec13fb&pid=1-s2.0-S0970389622000477-main.pdf","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"IIMB Management Review","FirstCategoryId":"1085","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0970389622000477","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 3
Abstract
Prior research reports that corporate debt restructuring can increase the stability of the participating bank by inflating the provision of restructured loans. This study evaluates how the stability of Bangladeshi commercial banks has changed following the implementation of the regulator-initiated corporate debt restructuring (RCDR) policy. Our comprehensive bank-level analysis reveals that debt restructuring has led to a reduction in non-performing loans (NPLs) and the provision of participating banks; however, these banks continue to experience lower stability after the policy period. This study provides a new and important insight into the debate on the effectiveness of debt restructuring on bank performance.
期刊介绍：
IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.
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