Review of Corporate Finance > Vol 3 > Issue 3

The Effects of the New European Bank Resolution Framework

Angela Maddaloni, European Central Bank, Frankfurt, Germany, , Giulia Scardozzi, Università degli Studi Internazionali di Roma, Italy,
Suggested Citation
Angela Maddaloni and Giulia Scardozzi (2023), "The Effects of the New European Bank Resolution Framework", Review of Corporate Finance: Vol. 3: No. 3, pp 451-480.

Publication Date: 26 Jul 2023
© 2023 A. Maddaloni and G. Scardozzi
JEL Codes: G21, G28
Bail-inEBUbanking resolution


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In this article:
Institutional Background 
Bail-in Policy Implications 


Changes in the bank resolution policy in the European Union (EU) induced some changes for the EU banking system. We discuss two main implications of the implementation of the bail-in resolution tool. First, we observe a general shift in the banks' liability structure toward less expensive sources of funding (e.g., customer deposits). We also examine the reallocation of banks' bond holdings across different investors. Mis-selling of risky bank bonds was common prior to the approval of the new resolution regulation. However, after the implementation of the bail-in mechanism, bank bonds have been reallocated more towards sophisticated financial intermediaries.



Review of Corporate Finance, Volume 3, Issue 3 Special Issue on Emerging Issues in Banking: Articles Overiew
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