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An important prerequisite for the efficiency of bail-in as a regulatory tool is that debt holders are able to bear the cost of a bail-in. Examining European banks' subordinated debt we caution that households may be investors in bail-in able bonds. Since households do not fulfil the...
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of the banking union. The Bank Recovery and Resolution Directive (BRRD) represents an important milestone in the …
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This paper argues that the European Unions Banking Recovery and Resolution Directive (BRRD) improved market discipline … in the European bank market for unsecured debt. The different impact of the BRRD on bank bonds provides a quasi …-natural experiment that allows to study the effect of the BRRD within banks using a difference-in-difference approach. Identification is …
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