Bail-in process FAQ

The Financial Stability Board (FSB) has developed international standards for the effective resolution of failing financial institutions. Bail in is a resolution tool that allows authorities to write-down or convert into equity or other instruments of ownership certain liabilities of a failing financial institution, including international debt securities (Eurobonds). The primary objective of bail-in is to preserve financial stability by maintaining the critical functions of the institution, while ensuring that losses are absorbed by its creditors and shareholders rather than by taxpayers.

The FSB provides detailed practices on how bail-in should be executed across markets, noting complexities such as:

• trading suspensions and delisting of old securities;
• issuance and re-listing of new shares;
• coordination across multiple countries and CSDs when securities are crossborder.

For further information, clients should refer to the attached "Financial Stability Board Bail-in process - Frequently Asked Questions".