IMF discussion note calls for 'bail-ins' for resolution of Sifis

‘Bail-ins' rather than ‘bail-outs' should be deployed to resolve liquidity issues that affect systemically important financial institutions (Sifis), according to a staff discussion note released by the International Monetary Fund (IMF) today (April 24).

"Bail-in is a statutory power to restructure the liabilities of a distressed Sifi by converting and/or writing down unsecured debt on a ‘going concern basis'," write Jianping Zhou, Virginia Rutledge, Wouter Bossu, Marc Dobler, Nadege Jassaud and