EUrahoitusvälineisiin

Euraarhoitusvälineisiin, known in English as EU bail-in instruments, refers to a set of tools and mechanisms designed by the European Union to manage the failure of banks and financial institutions. The primary objective of these instruments is to ensure that the costs of resolving a failing bank are borne by its shareholders and creditors, rather than by taxpayers. This approach is a shift from previous bail-out policies where public funds were often used to rescue failing institutions.

The core concept of a bail-in is that certain creditors, such as bondholders and even large depositors, can be forced to absorb losses by converting their claims into equity or by writing down the value of their investments. This process aims to recapitalize the failing institution, making it viable again or facilitating an orderly resolution. The specific hierarchy of who bears losses is determined by legal frameworks, with unsecured creditors typically being the first in line after shareholders.

The implementation of EU bail-in instruments is a key component of the EU's Banking Union, established to create a more stable and resilient financial sector across member states. The Single Resolution Mechanism (SRM) and the Single Resolution Fund (SRF) are central to this framework, providing the tools and financial backstop necessary to manage bank failures effectively. These instruments are crucial for preventing systemic risk and maintaining financial stability within the Eurozone and the wider EU.