Header

UZH-Logo

Maintenance Infos

Bail-in: a regulatory critique


Alexander, Kern (2017). Bail-in: a regulatory critique. Journal of international banking and financial law: JIBFL:28-29.

Abstract

This short article discusses some of the legal and market risks in using the bail-in resolution tool, as it is defined and applied in the EU Bank Recovery and Resolution Directive. The BRRD’s bail-in tool provides resolution authorities with wide discretion to impose losses on the creditors and shareholders of a distressed bank while it is a going concern. The article argues that the rules governing when and how resolution authorities can use the bail-in tool are vague and provide inadequate guidance for market participants. The bail-in tool represents an ad hoc regulatory measure that undermines market confidence and potentially infringes on fundamental property rights under EU and ECHR jurisprudence.

Abstract

This short article discusses some of the legal and market risks in using the bail-in resolution tool, as it is defined and applied in the EU Bank Recovery and Resolution Directive. The BRRD’s bail-in tool provides resolution authorities with wide discretion to impose losses on the creditors and shareholders of a distressed bank while it is a going concern. The article argues that the rules governing when and how resolution authorities can use the bail-in tool are vague and provide inadequate guidance for market participants. The bail-in tool represents an ad hoc regulatory measure that undermines market confidence and potentially infringes on fundamental property rights under EU and ECHR jurisprudence.

Statistics

Downloads

1 download since deposited on 19 Feb 2018
1 download since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, not refereed, original work
Communities & Collections:02 Faculty of Law > Institute of Legal Sciences > Business Law
Dewey Decimal Classification:340 Law
Language:English
Date:January 2017
Deposited On:19 Feb 2018 11:42
Last Modified:20 Mar 2018 00:40
Publisher:Butterworth
ISSN:0269-2694
OA Status:Closed
Related URLs:http://www.recherche-portal.ch/ZAD:default_scope:ebi01_prod000994727 (Library Catalogue)
http://www.lexisnexis.co.uk/en-uk/products/jibfl.page
http://e-solution.lexisnexis.de/KSH/de/index.html

Download