The resilience of households in bank bail-ins

Peter Lindner and Vanessa Redak ()
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Vanessa Redak: Oesterreichische Nationalbank

Financial Stability Report, 2017, issue 33, 88-101

Abstract: Potential losses incurred by households holding bail-in-able assets may be an issue in bank resolution matters and restructuring procedures – and are thus a financial stability issue. Yet, the range of households that may be affected by bank defaults is not sufficiently evident from aggregate statistics. Therefore, this paper uses the Eurosystem Household Finance and Consumption Survey (HFCS) to investigate the investment portfolio items of households from selected European countries that could potentially be eligible for bail-in. Doing so allows us to discuss the resilience of possibly affected households to shocks to their portfolio in terms of other household characteristics. Overall, the results show that, in addition to the relatively high resilience of households in terms of shock-absorbing capacity, the relatively few investors that exist are on average more inclined to take risks than the general population.

Keywords: bail-in-able assets; household portfolio; risks; bank default; HFCS (search for similar items in EconPapers)
JEL-codes: D14 D31 E44 G11 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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