In contrast to a bail-out, a “bail-in” is intended to rescue a failing bank by making its creditors and shareholders bear the cost of recapitalizing the bank through conversion of some or all of the bank’s bail-in debt into common shares.
In contrast to a bail-out, a “bail-in” is intended to rescue a failing bank by making its creditors and shareholders bear the cost of recapitalizing the bank through conversion of some or all of the bank’s bail-in debt into common shares.