Is there a ‘retail challenge’ to banks’ resolvability? What do we know about the holders of bail-inable securities in the Banking Union?

To ensure the credibility of market discipline induced by bail-in, neither retail investors nor peer banks should appear prominently among the investor base of banks’ loss absorbing capital. Empirical evidence on bank-level data provided by the German Federal Financial Supervisory Authority raises a few red flags. Our list of policy recommendations encompasses disclosure policy, data sharing among supervisors, information transparency on holdings of bail-inable debt for all stakeholders, threshold values, and a well-defined upper limit for any bail-in activity.

Il documento è un parere, svolto insieme a colleghi del Leibniz Institute for Financial Research SAFE di Francoforte, richiesto dal Parlamento europeo in materia di bail-in. Nello specifico è stata richiesta un'opinione circa le problematiche che possano derivare, così come successo durante la prima applicazione della nuova disciplina europea sulle crisi bancarie, dal collocamento di passività sottoponibili a bail-in presso clientela retail.