Bail in

Bail in

Glossary
Banking

Bail in

Bail-in provisions of subordinated debt, some senior debt and uninsured deposits call for these instruments to be converted into equity or written down when certain capital triggers are breached, effectively forcing affected debt holders and uninsured depositors to be bailed in (rather than being bailed out), either receiving equity or being written down. Additional Tier 1 (AT1), Tier 2 and senior non-preferred regulatory capital instruments are examples of instruments with bail-in provisions.

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