Abstract. This paper is concerned with one aspect of the motion of financial institution slumps, namely the design of the financial systems which may be used by the authorities in refundizing financial institutions. When a substantial part of the financial institution network is insolvent, these questions have significant consequences for the allowance loss, for the conduct of fiscal approach, and for the profitability of, and incentive structure for, the reexploited financial institutions.

JEL: E62, E63