bail-ins

A bail-in is a rescue of a failing financial institution that forces its creditors and depositors to absorb losses, rather than using taxpayer money.

Unlike a bailout, where external funds prop up the institution, a bail-in converts debt to equity or writes down deposits above insured limits: Cyprus imposed bail-ins during its 2013 banking crisis.

The term emerged after the 2008 financial crisis as regulators sought alternatives to publicly funded rescues.