the process of saving a bank by making it use up its internal resources firstA bail-in takes place before a bankruptcy and under current proposals, regulators would have the power to impose losses on bondholders while leaving untouched other creditors of similar stature, such as derivatives counterparties.
Germany has pushed for depositors in Cypriot banks to help pay for the rescue, a process known as a “bail-in”.
Submitted from:
United Kingdom on 26/03/2013