of bail-outs. Raising public funds to conduct a bail-out entails the deadweight loss of distortionary taxation. Bank bail … domestic bank failures may be contemporaneous to sovereign crises, giving rise to risk-sharing motives to mutualize the funding … the public backstop and forbearance in early bank intervention in the fiscally stronger country, facilitating bail-outs in …

a bailout either if the bank is small in the economy or if the bank is large and the ex ante stability level of the bank …In a global game, I show that creditor bailins, when well-designed, can attain the exact same level of bank stability …

BRRD diminished bail-out expectations. Bank bonds subject to BRRD bail-in carry a 10 basis points bail-in premium in terms … in the European bank market for unsecured debt. The different impact of the BRRD on bank bonds provides a quasi … based on the fact that (otherwise identical) bonds of a given bank maturing before 2016 are explicitly protected from BRRD …

The declared intention of policy makers is that future bank restructuring should be conducted through bail-in rather … than bail-out. Over the past years there have been a few cases of European banks being restructured where creditors were … countries with limited fiscal space for bail-out. Moreover, actual bail-ins lead to stronger market reactions than the legal …