bail-in

Internal bank rescue

A bail-in is a rescue of a failing financial institution using funds from its own creditors, bondholders, or depositors rather than external sources like government bailouts.

During a bail-in, these stakeholders may see their holdings converted to equity or reduced in value to absorb losses: Regulators ordered a bail-in to prevent the bank's collapse.

The term emerged after the 2008 financial crisis as an alternative to taxpayer-funded rescues.

resolution

recapitalization

Restructuring corporate capital composition

creditors · depositors · haircut · losses · writedown · conversion · debt-to-equity · subordinated · bondholders · recovery

systemic

contagion

Disease spread by contact

spillover · domino · cascading · safeguard · firewall · buffer · backstop · prudential · oversight · supervision

regulatory

Dodd-Frank

Financial regulation legislation

statutory · cross-border · harmonization · compliance

Categories
Opposites
source of rescue funds

bail-inbailout

Emergency aid preventing bankruptcy

state intervention · government intervention · nationalization · TARP

institutional fate

bail-inliquidation

Selling assets for cash

bankruptcy · dissolution · receivership · winding up · collapse

Family

bailing

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Negative · Rated G