On the Credibility of Bail-ins. Has the Single Resolution Mechanism become more credible for European Banks after the Banco Popular Bail-in?

Inhaltsverzeichnis (Table of Contents)

• Introduction
• To Bail-in or Not to Bail-in
  • The General Approach
  • The Regulator's Decision Process
  • Effect of too-big-to-fail
  • Addressing the Problem
• Event Study
  • Previous Studies
  • Context
  • Hypotheses
  • Methodology
  • Robustness Testing
  • Interpretation of Results
  • Shortcomings and Further Research
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This work examines the impact of the Banco Popular bail-in on the credibility of the Single Resolution Mechanism (SRM) for European banks. It analyzes the effectiveness of the SRM in mitigating the risk of too-big-to-fail and assesses the influence of the bail-in on market perception and confidence in European banking.

• The effectiveness of the Single Resolution Mechanism (SRM)
• The impact of bail-ins on market confidence and investor perception
• The role of too-big-to-fail in shaping regulatory responses
• The impact of the Banco Popular bail-in on the credibility of the SRM
• The potential for future bail-ins and their implications for the European banking system

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: Introduces the topic of bank bail-ins and the Single Resolution Mechanism (SRM), highlighting the significance of the Banco Popular case study.
• To Bail-in or Not to Bail-in: Discusses the general approach to bail-ins, the decision process of regulators, the impact of too-big-to-fail, and proposed solutions to address the problem.
• Event Study: Examines previous studies on the subject, sets the context for the research, outlines hypotheses, details the methodology employed, presents robustness testing, analyzes the interpretation of results, and discusses shortcomings and future research directions.

Schlüsselwörter (Keywords)

This paper focuses on the credibility of bail-ins in the context of the Single Resolution Mechanism (SRM), the impact of the Banco Popular bail-in, too-big-to-fail, event study methodology, and market perception of European banking.