Definition

Bailout [Ro.: bailout/recapitalizare, Fr.: bailout/renflouement; Gr.: διάσωση] (see also: bank recovery and resolution; recapitalisation mechanisms; Monte dei Paschi; bail-in) = a measure taken with the aim of the recapitalisation of a financial institution from an external source, which can take the form of loans, bonds, stocks or cash.

Useful links

Online Publications

De Bonis, Riccardo and Giustiniani, Alessandro and Gomel, Giorgio, Crises and Bail-outs of Banks and Countries: Interconnections, Analogies, Differences (1998). FEEM Working Paper REG 40.98. Available at SSRN: https://ssrn.com/abstract=124528  [English]

Dow, James and Han, Jungsuk, Should We Commit to Bailing Out? (September 25, 2016). Swedish House of Finance Research Paper No. 14-12. Available at SSRN: https://ssrn.com/abstract=2006464  [English]

Gropp, Reint and Hakenes, Hendrik and Schnabel, Isabel, Competition, Risk-Shifting, and Public Bail-Out Policies (June 17, 2009). Review of Financial Studies, Forthcoming; European Business School Research Paper No. 09-13. Available at SSRN: https://ssrn.com/abstract=1428784  [English]

Hakenes, Hendrik and Schnabel, Isabel, Banks without Parachutes - Competitive Effects of Government Bail-out Policies (November 2004). MPI Collective Goods Research Paper No. 2004/12. Available at SSRN: https://ssrn.com/abstract=600901  [English]

Nijskens, Rob and Eijffinger, Sylvester C. W., The Lender of Last Resort: Liquidity Provision versus the Possibility of Bail-Out (February 5, 2010). European Banking Center Discussion Paper No. 2010-02. Available at SSRN: https://ssrn.com/abstract=1562709  [English]

Publications

Arora, A., 2014, Banking Law, Pearson [English]

Heffernan, S., 2005, Modern Banking, John Wiley & Sons [English]

Michaelides, A., Orphanides, A., 2016, The Cyprus Bail-in: Policy Lessons from the Cyprus Economic Crisis [English]       

Roubini, N., Setser, B., 2004, Bailouts Or Bail-Ins?: Responding to Financial Crises in Emerging Economies [English]

Andrew Antony, W., Guard, J., 2009, Bankruptcies and Bailouts, Fernwood Publications [English]

By Alin-Ionuț Badea