imported>Doug Williamson |
imported>Doug Williamson |
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| == Statutory bailin ==
| | Same as Cashflow statement. |
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| Sometimes "bail-in".
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| A technique used as part of the resolution of a failed bank under statutory authority.
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| The Resolution Authority (RA) makes an assessment of the extent of expected losses and reconstructs the bank's capital accordingly.
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| In reconstructing the bank's capital the RA imposes losses on creditors, including preferred shareholders and depositors.
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| The allocation of the total expected losses follows the creditor hierarchy that would apply in a liquidation, until the total expected losses are covered.
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| The remaining (surviving) layers of debt are partially converted to equity to recapitalise viable parts of the business.
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| The viable parts of the business are thus enabled to continue under new ownership.
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| The RA is normally given significant discretion in how the reconstruction - including bailin - is applied.
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| == Contractual bailin ==
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| 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.
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| == See also == | | == See also == |
| * [[Resolution Authority]] | | * [[Bookkeeping]] |
| * [[Multiple Point of Entry]] | | * [[Cashflow statement]] |
| * [[Single Point of Entry]] | | * [[Financial statements]] |
| | | * [[Financing activities]] |
| [[Category:Regulation_and_Law]] | | * [[FRS 102]] |
| [[Category:Managing_Risk]] | | * [[Income statement]] |
| | * [[Investing activities]] |
| | * [[Operating activities]] |
| | * [[Statement of cash flows]] |
| | * [[Working capital]] |
