anticipation of this bailout undermines a bank's private incentive to impose a bail-in. In the resulting equilibrium, bail-ins are …We study the interaction between a government's bailout policy and banks' willingness to impose losses on (or \bail in … stability by imposing a system-wide, mandatory bail-in at the onset of a crisis. In some situations, allowing banks to choose …

The recent crisis has shown that systemically relevant banks in distress are likely to benefit from governmental … risks. In this paper we show empirically that implicit guarantees lead to more leverage and to a lower quality of bank … analysis combines bank balance sheet information from 92 countries with Fitch Support Ratings and World Bank survey data on …

The economic and financial crisis of the year 2008 highlighted the need for banking sector regulation via the creation … of the banking union. The Bank Recovery and Resolution Directive (BRRD) represents an important milestone in the … opposite principle of bail-in, which makes the bank recapitalized from the internal resources at the detriment of investors and …