A bail-in forces bondholders and other creditors of a company on the verge of failure to bear some of the burden by writing off debt they are owed or converting it into equity. This is in contrast to a bailout, the rescue of a firm by external parties like taxpayers. The US has implemented bail-in provisions, giving regulators the power to place banks and bank holding companies in receivership. In Europe, bail-ins have been used in Cyprus, Denmark and Spain.
Click here for articles on bail-in.