XXVI Edition

14-15-16 December 2017"

The Bail-in Tool in Bank Resolution Framework: the Preliminary Empirical Evidence from Small and Specialised Banks

Miklaszewska Ewa, Cracow University of Economics
Pys Jan, Cracow University of Economics

The purpose of this paper is to identify the key elements of resolution framework under the Single Resolution Mechanism (SRM) and Bank Recovery and Resolution Directive (BRRD) and to assess its impact on the small banks, in particular on the cooperative sector in the EU, with a special focus on Italy. The paper attempts to demonstrate that the new European resolution framework addresses the issues identified during the crisis and contains sufficient instruments and arrangements allowing for an efficient resolution of large banks. However, there are some serious political and social problems when it is applied to a small banks’ or bank networks, such as the cooperative sector, and Italian banking market is a case in the point.

Area: New challenges for the future of Italian and European banks (Rivista Bancaria Award)

Keywords: bail-in tool, bank resolution, cooperative banks

Paper file

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