Liikanen report’s bail-in bond call sparks debate

04 Oct 2012

FIG investors and funding officials were at odds over recommendations this week for banks to hold specific bail-in bonds. While some argued that greater loss absorbency was a good thing, others called for simplicity in the capital structure, writes Katie Llanos-Small.

A high-level expert committee led by Bank of Finland governor Erkki Liikanen on October 4 recommended banks hold the new form of bail-inable debt. The call, made in a broader report that looked at structural changes to European banks, sparked the debate just one day after the European ...

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