From Bail-out to Bail-in: Mandatory Debt Restructuring of Systemic Financial Institutions

 
Author/Editor: Rutledge, Virginia ; Moore, Michael ; Dobler, Marc ; Bossu, Wouter ; Jassaud, Nadège ; Zhou, Jian-Ping
 
Publication Date: April 24, 2012
 
Electronic Access: Free Full text (PDF file size is 481KB).
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Summary: The proposed SDN, prepared by a team of MCM/LEG experts, analyses whether bail-in -- defined as a statutory power to recapitalize a distressed SIFI by converting and/or writing down its unsecured debt -- could be a useful complementary tool to other resolution powers. More specifically, the note studies the effectiveness of bail-in in achieving prompt bank recapitalization at the time of distress, discusses potential risks when a bail-in power is activated, and proposes design features to mitigate these risks.
 
Series: Staff Discussion Notes No. 12/3
Subject(s): Banking crisis | Banks | Debt restructuring | Financial institutions | Financial risk | Financial stability | Intervention

Author's Keyword(s): Financial regulatory reforms | banking crisis | bailout | too big to fail | bank capitalization
 
English
Publication Date: April 24, 2012
ISBN/ISSN: 9781475503906 Format: Paper
Stock No: SDNEA2012003 Pages: 27
Price:
US$20.00 (Academic Rate:
US$20.00 )
 
 
English
Publication Date: April 24, 2012
ISBN/ISSN: 978-1-61635-392-6 / 2221-030X Format: A web quality merged PDF
Stock No: SDNET2012003 Pages: 26
Price:
Free
 
 
English
Publication Date: April 24, 2012
ISBN/ISSN: 978-1-61635-392-6 / 2221-030X Format: A web quality merged PDF
Stock No: SDNETEA2012003 Pages: 26
Price:
US$0.0
 
 
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