International and Community Issues on Bankruptcy Regulation of Credit Institutions

Despite the international efforts on the development of a special surveillance regime, banks may become insolvent. The poor management, the excessive risk, the adverse conditions in the market or fraudulent practices can cause serious or even fatal financial problems. Therefore, the rules of “ex ante” are not enough, but there must be an adequate legislative framework for bank insolvency situations. The need for special rules relating to bankruptcy for these companies is mainly due to considerable economic repercussions of the failures that affect them.