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MREL and TLAC: The Path from Bail-out to Bail-in for Banks' Creditors in the European Union

Best, Stefan; Read, Oliver - In: Credit and Capital Markets – Kredit und Kapital 50 (2017) 3, pp. 337-362

In the wake of the financial market crisis new rules on banking recovery and resolution of systemic banks have been enacted in order to facilitate the bail-in of banks' creditors. Banks will be required to maintain sufficient amounts of own funds and bail-inable debt called Minimum Requirement...

Persistent link: https://www.econbiz.de/10014522672

Does Subordinated Debt Discipline Banks? Empirical Evidence of Market Discipline in Europe

Schürk, Daniel - In: Junior Management Science (JUMS) 4 (2019) 2, pp. 228-240

This thesis provides a differentiated answer to the question whether subordinated debt disciplines bank's risk-taking behavior. I investigate the conditions and applicability of market discipline through subordinated debt instruments by critically reviewing the state of research. Relating to the...

Persistent link: https://www.econbiz.de/10014528869

Should the marketing of subordinated debt be restricted/different in one way or the other? What to do in the case of mis-selling?

Götz, Martin R.; Tröger, Tobias - 2016

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...

Persistent link: https://www.econbiz.de/10011442595

Italian bank crisis: Flexible application of BRRD rules, or a bailout in disguise?

Famfollet, Jan; Sankotová, Eliška - In: Review of Economic Perspectives 20 (2020) 2, pp. 109-135

of the banking union. The Bank Recovery and Resolution Directive (BRRD) represents an important milestone in the …

Persistent link: https://www.econbiz.de/10012384141

Debt holder monitoring and implicit guarantees: Did the BRRD improve market discipline?

Cutura, Jannic Alexander - 2020

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 …