Risk glossary
Risk glossary
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Bail-in
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.
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