Building better bad banks: The political economy of public asset management companies for resolving financial crises

Banks and governments in Europe and the United States have faced massive non-performing loans (NPLs), which threaten not only the banks’ solvency, but also general financial and economic stability. Many countries have used, and continue to use, public asset management companies as part of strategies to restore their banking systems. Generally, public asset management companies (AMCs) are set up as part of broader bank recapitalisation strategies. Mark Hallerberg’s research project, funded by the German Research Foundation, examines the multi-level principal-agent relationships behind AMC creation and operations.