Bail-In and Total Loss-Absorbing Capacity (TLAC). Legal and Economic Perspectives on Bank Resolution with Functional Comparison offers a detailed and comparative analysis of Swiss and European Union (EU) law relating to bail-ins and their economic impact. As opposed to a bank bailout, a bail-in occurs when creditors are forced to bear some of the burden of bank failure. The principal aim of this restructuring tool is to eliminate some of the risk for taxpayers. Several jurisdictions, including Switzerland and the EU, have adopted legal provisions regarding the bail-in, but until now, book literature on its implementation has been scarce. This is the first book to provide an in-depth coverage of this new method of dealing with the failure of systemically important banks.
What’s in this book:
In its contextualisation and analysis of the bail-in resolution tool, the book identifies and discusses the legal and economic issues that arise, including such aspects as the following:
- the legal and economic properties of bail-in capital;
- the regulatory standard on TLAC issued by the Financial Stability Board (FSB);
- the scope and sequence of liabilities subjected to bail-in;
- the legal position of stakeholders affected by a bail-in;
- strategies and procedures for the implementation of a bail-in;
- the limited circumstances under which government rescues should be available; and
- cross-jurisdictional issues and aspects of international cooperation.
As well as case studies and analyses of legal issues with particular reference to Swiss law and the European Bank Resolution and Recovery Directive (2014/59/EU), the author applies economic concepts to the analysis of the law. International developments, in particular standards issued by leading regulatory bodies, are also covered.
How this will help you:
This book focuses on the development of perspectives on the implementation of a bail-in by the resolution authority. In addition, the economic and legal issues of bank bail-ins are identified, analysed and critically assessed, with particular reference to Swiss and EU law. As a detailed analysis of a new and highly significant development in banking law, this book serves as an invaluable tool to legal practitioners working in banks and in banking regulation and by policymakers seeking information on the practical issues involved.
Features
Providing legal and economic perspectives on bail-in legislation, comparisons of EU law (BRRD) and Swiss law, case studies for bank resolution, analysis of the bail-in procedure, analysis of incentives associated with bail-in, law & economics, analysis of liabilities subjected to bail-in, assessment of total loss-absorbing capacity (TLAC) requirements, analysis of bail-in procedure, constitutional perspectives on bail-in, discussion of resolution strategies for global systemically important banks (G-SIBs), contextualization of bail-in rules both in current and historical bank regulation.
Benefits
Understanding relevant bail-in provisions from both the practical and the academic perspective, understanding resolution mechanism for banks, knowledge on regulatory concepts due to contextualization and functional comparison of Swiss and EU law, understanding economic impact and understanding incentives associated with bail-in legislation, understanding context of bail-in and wave of new legislation hitting systematically important banks, relevant for practitioners and academics.