Bail-in

rescuing a bank by converting its debts and deposits into its equity

In more detail

The rescue of a bank at the expense of its own lenders: their claims, large account balances included, are turned into a stake in that bank.

It was invented after rescuing banks at taxpayers' expense became politically impossible.

Covered in the primer of chapter 8.

Where it appears in the course

In the academy “Bail-in” is not a definition but an operation: you post it yourself and watch what it does to the balance sheet.

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