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Bail-in as a Blunt Sword for Bailing-Out Banks? Restructuring and Resolution in the European Banking Union

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Listed:
  • Sarah Zech
  • Bernd Rudolph

Abstract

On 24 September 2015 the German Bundestag approved the law on the resolution mechanism for the implementation of the Standard resolution mechanism for banks. This aims to provide the euro area with an improved set of legal instruments with which to restructure or liquidate distressed banks. In the opinion of Sarah Zech, GSK Stockmann + Kollegen, Munich, and Bernd Rudolph, University of Munich, these resolution powers mark an major step in addressing the too-big-to-fail-problems of banks.

Suggested Citation

  • Sarah Zech & Bernd Rudolph, 2015. "Bail-in as a Blunt Sword for Bailing-Out Banks? Restructuring and Resolution in the European Banking Union," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(20), pages 25-34, October.
    • Handle: RePEc:ces:ifosdt:v:68:y:2015:i:20:p:25-34
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    References listed on IDEAS

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    1. Franz-Christoph Zeitler, 2014. "Conditions for an Effective Banking Union," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 67(10), pages 16-22, May.
    2. Jan Pieter Krahnen, 2013. "Rettung durch Regulierung? Eckpunkte des Liikanen-Berichts," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 14(3-4), pages 167-185, August.
    3. Ester Faia & Beatrice Weder di Mauro, 2015. "Cross-Border Resolution of Global Banks," European Economy - Discussion Papers 011, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Stefan Avdjiev & Anastasia Kartasheva & Bilyana Bogdanova, 2013. "CoCos: a primer," BIS Quarterly Review, Bank for International Settlements, September.
    5. Barth, Andreas & Schnabel, Isabel, 2014. "Der Abbau von impliziten Garantien im Bankensystem: Eine empirische Analyse auf Basis von CDS-Spreads," Working Papers 09/2014, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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