bail-in

English

Etymology

From bail +‎ in, formed to contrast with bailout, which came first.

Noun

bail-in (plural bail-ins)

  1. The process of saving a bank from insolvency by making use of its internal resources (such as client deposits).
    Coordinate term: bailout
    • 2010 January 28, “From bail-out to bail-in”, in The Economist‎[1], →ISSN:
      A “bail-in” process for bank resolution is a potentially powerful “third option” that confronts this problem head-on. It would give officials the authority to force banks to recapitalise from within, using private capital, not public money.
    • 2016, Giuseppe Boccuzzi, The European Banking Union: Supervision and Resolution:
      Alternatively, where losses are not completely transferred to other creditors, the resolution fund can provide a contribution to the bank in order to cover the losses not absorbed through the bail-in and the capital shortfall, as well as to buy shares or other capital instruments of the bank under resolution in order to recapitalise it.
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