SRB publishes document on bail-in approach in the Banking Union

Today, the SRB has published a document for banks, investors and other stakeholders on executing its bail-in decision, as well as links to national resolution authorities’ mechanics for bail-in (in line with EBA guidelines).

Bail-in is a key resolution tool in a banking crisis, in order to absorb losses and recapitalise failing banks. It allows the write-down of debt owed by a bank to creditors or its conversion into equity to absorb losses and stabilise the bank. The mechanics of how bail-in is applied to a bank under resolution is defined by each national authority in line with its national legal framework.

“Shared understanding and coordination around bail-in are essential for successfully resolving banks, without the impact falling on the taxpayer or financial stability. This document and the national bail-in mechanics bring more transparency about how bail-in works in practice, and particularly in a cross-border group,” said SRB Chair Dominique Laboureix.

• Access the document.

Bail-in: part of the SRM's toolkit

PDF | 892.93 KB | Publishing date: 29/07/2024

Bail-in: part of the SRM's toolkit

• Further information on the national bail-in mechanics in the various jurisdictions of the BU can be found on the SRB’s website.