imported>Doug Williamson |
imported>Administrator |
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| '''1. Statutory bailin'''
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| | An independent professional organisation, which plays a leading role in promoting and protecting consumer interests throughout the UK, while ensuring that businesses are fair and competitive. |
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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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| | == See also == |
| | * [[Competition Commission]] |
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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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| '''2. 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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| Sometimes written ''bail-in'' or ''bail in''.
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| == See also ==
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| * [[Loss absorbing capacity]]
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| * [[Resolution Authority]]
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| * [[Multiple Point of Entry]]
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| * [[Single Point of Entry]]
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| *[[SLAC]]
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| * [[Cash in the new post-crisis world]]
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| * [[Bailout]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Risk_frameworks]]
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