The key tasks facing supervisors now are to observe the market very closely and to press ahead with efforts to improve the legal framework for coco bonds. Once these tasks have been accomplished, coco bonds can be a useful addition to banks’ capital structure. By helping to strengthen the capital base, they will make an added contribution to enhancing banks’ resilience to future crises.
• The World Bank (2018): “Improving Access to Finance for SMEs - Opportunities through Credit Reporting, Secured Lending and Insolvency Practices”, https://www.doingbusiness.org/content/dam/doingBusiness/media/Special-Reports/improvingaccess-to-finance-for-SMEs.pdf, Washington DC. • The World Bank (2019), “Doing business 2020”, http://www.doingbusiness.org/data/exploretopics/resolving-insolvency, Washington DC.