The New Bank Resolution Framework

Angela Maddaloni and Giulia Scardozzi ()
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Giulia Scardozzi: Roma Tre University

Chapter Chapter 1 in The New Bail-In Legislation, 2022, pp 1-15 from Palgrave Macmillan

Abstract: Abstract Since the global financial crisis, the European banking industry has experienced great turmoil. European policymakers have implemented a harmonized and enhanced European banking union based on three pillars—supervision (via the creation of the Single Supervisory Mechanism), resolution (via the creation of the Single Resolution Board and the Bank Recovery and Resolution Directive), and deposit insurance. This chapter focuses on the second pillar that introduced the bail-in tool. This tool, introduced with the Bank Recovery Resolution Directive, aims at fostering an orderly and harmonized crisis management in European countries. This chapter highlights the economic mechanisms at work including the possible unintended consequences caused by the change in resolution policy. These include inter alia, political economy hurdles on the implementation, the possibility of runs, and miss-selling.

Keywords: Bail-in; BRRD; EBU; Bank resolution (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-030-87560-2_1

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DOI: 10.1007/978-3-030-87560-2_1

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