Contractual bailin
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Bank regulation - recapitalisation - Resolution Authority.
Bailin refers to the use of private sector money, rather than public money, to deal with a failed or failing bank.
Under bailin, private sector creditors of the bank suffer a share of the bank's losses.
Contractual bailin refers to a provision in the terms of certain bank debt instruments that are converted automatically to equity or written off, if conditions specified in the related contract obtain.
See also
- Bailin
- Bailout
- Capital
- Capital adequacy
- Contingent convertible capital
- Contract
- Eligible liabilities
- Equity
- Loss absorbing capacity
- MREL
- Multiple Point of Entry
- Provision
- Recapitalisation amount
- Recapitalise
- Regulation
- Resolution Authority
- Resolution weekend
- Secondary Loss Absorbing Capital (SLAC)
- Single Point of Entry
- Statutory bailin
- TARP
