Bailin and SLP: Difference between pages

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== Statutory bailin ==
''Sustainability - loan markets.''
   
Sometimes "bail-in".


A technique used as part of the resolution of a failed bank under statutory authority.  
Abbreviation for the Social Loan Principles.


The Resolution Authority (RA) makes an assessment of the extent of expected losses and reconstructs the bank's capital accordingly. 


In reconstructing the bank's capital the RA imposes losses on creditors, including preferred shareholders and depositors.
The SLP are a voluntary framework for social loans, issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications & Trading Association (LSTA).


The allocation of the total expected losses follows the creditor hierarchy that would apply in a liquidation, until the total expected losses are covered.


== See also ==
The remaining (surviving) layers of debt are partially converted to equity to recapitalise viable parts of the business.
* [[Asia Pacific Loan Market Association]]
* [[ESG investment]]
* [[Green Bond Principles]]
* [[Loan Market Association]]
* [[Loan Syndications & Trading Association]]
* [[Social Bond Principles]]
* [[Social loan]]
* [[Social Loan Principles]]
* [[Social project]]
* [[Sustainability]]
* [[Sustainability Bond Guidelines]]


The viable parts of the business are thus enabled to continue under new ownership.


===Other links===
[https://www.lma.eu.com/application/files/1816/1829/9975/Social_Loan_Principles.pdf Social Loan Principles - LMA, APLMA & LSTA]


The RA is normally given significant discretion in how the reconstruction - including bailin - is applied.
[[Category:The_business_context]]
 
[[Category:Corporate_finance]]
 
[[Category:Investment]]
 
[[Category:Long_term_funding]]
== Contractual bailin ==
[[Category:Compliance_and_audit]]
[[Category:Ethics]]
 
[[Category:Identify_and_assess_risks]]
Contractual bailin refers to a provision in the terms of certain bank debt that are to be converted automatically to equity or written off, if conditions specified in the contract obtain.
[[Category:Manage_risks]]
 
[[Category:Risk_frameworks]]
 
[[Category:Risk_reporting]]
== See also ==
[[Category:Financial_products_and_markets]]
* [[Resolution Authority]]
* [[Multiple Point of Entry]]
* [[Single Point of Entry]]
 
[[Category:Regulation_and_Law]]
[[Category:Managing_Risk]]

Revision as of 11:55, 29 July 2021

Sustainability - loan markets.

Abbreviation for the Social Loan Principles.


The SLP are a voluntary framework for social loans, issued by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA) and the Loan Syndications & Trading Association (LSTA).


See also


Other links

Social Loan Principles - LMA, APLMA & LSTA

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