This paper investigates whether a bank regulator should terminate problem banks promptly or exercise forbearance. We …

may make it easier for the bank to dispose of assets seized in a loan default. The internal market formed inside the … banking and commerce conglomerate increases the liquidity of such assets and improves the bank's ability to perform financial … some cases, a bank will voluntarily refrain from making loans, choosing to become a non-bank bank in an unregulated …