lacked an adequate legal framework for bank resolution. Policy measures adopted after the 1997 - 1998 systemic crisis …, supported by a newly established comprehensive framework for bank resolution, were more decisive. Banking sector problems were … rapidly, and deplete bank capital. If the authorities do not address the banking sector problem promptly, then the crisis will …

to systematic risk and tend to show higher tail risk. These characteristics, in turn, are closely associated with joint … failures and systemic risk. In order to achieve greater stability of the financial system, it is important to prevent the …