IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789813223400_0021.html
   My bibliography  Save this book chapter

Bail-in-able Debt and Fragility

In: Achieving Financial Stability Challenges to Prudential Regulation

Author

Listed:
  • Russell Cooper

Abstract

This chapter studies the effects of bail-in-able debt (BID) on the fragility of banks. There are existing institutional structures, the Bank Recovery and Resolution Directive (BRRD) in the European Union and the Total Loss Absorbing Capacity (TLAC) rule in the US, that are built upon the role of BID in limiting government involvement in failed intermediaries. The basic idea is to create a separate class of bank liabilities which in normal times act as debt instruments but in the event of a bank failure convert to equity claims. A reduction in the claim on the bank implies that the depositor has, in effect, reduced the amount of bailout, if any, needed to rescue the bank…

Suggested Citation

  • Russell Cooper, 2017. "Bail-in-able Debt and Fragility," World Scientific Book Chapters, in: Douglas D Evanoff & George G Kaufman & Agnese Leonello & Simone Manganelli (ed.), Achieving Financial Stability Challenges to Prudential Regulation, chapter 21, pages 295-304, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813223400_0021
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789813223400_0021
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789813223400_0021
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Money and Banking; International Banking; Financial Instititions; Banks; Regulations; Compliance; Financial Crisis; Great Financial Crisis 2008; Microprudential; Macroprudential; Financial Stability;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789813223400_0021. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.