"There is a wide cross-country variation in the institutional structure of bank failure resolution, including the role of the deposit insurer. The authors use quantitative analysis for 57 countries and discuss specific country cases to illustrate this variation. Using data for over 1,700 banks...

Most banks around the world delay provisioning for bad loans until it is too late, when cyclical downturns have already set in. The size and timing of loan loss provisions tend to improve with the level of economic development