The Bank Recovery and Resolution Law. Bank Recapitalization Regime (bail-in) and State Guarantee Cover Image

The Bank Recovery and Resolution Law. Bank Recapitalization Regime (bail-in) and State Guarantee
The Bank Recovery and Resolution Law. Bank Recapitalization Regime (bail-in) and State Guarantee

Author(s): Dumitru Pintea
Subject(s): Business Economy / Management, Financial Markets
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: bail-in;
Summary/Abstract: The bail-in procedure is a relatively new one at global level. Actually, according to Directive 2014/59/UE, up until now no European financial institution was salvaged from bankruptcy through bail-in5. Considering the complexity of the Directive, the existing contraindications between European governments regarding the bail-in procedure, as well as the extremely strong lobby from international financial groups, certain reluctance in implementing the provisions is present in several European countries. However, the recent history notes the use of bail-in in the Cyprus banking crisis, and more specifically, in the recovery of the financial situation in two financial institutions with systemic impact.

  • Page Count: 9
  • Publication Year: 2016
  • Language: English