Europe caught in a ‘trap’ of bail-in reluctance, says legal expert

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By Tyler Davies
25 Feb 2021

A professor of financial law told a panel at the European Banking Institute this week that the EU still had a “rather long way to go” in its work to establish a credible bail-in regime, leaving member states vulnerable to costly bailouts.

Panellists had convened to discuss the creation of a common backstop to the Single Resolution Fund, which will be provided by a credit line from the European Stability Mechanism.

Euro area finance ministers agreed in December that they would bring the backstop’s introduction forward by about two ...

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