Bail-in within resolution is a core part of resolution strategies of global systemically important banks (G-SIBs). It refers to the write-down and/or conversion of liabilities into equity and helps implement a creditor-financed recapitalisation as part of an orderly resolution that minimises impacts on financial stability, ensures the continuity of critical functions, and avoids exposing taxpayers to loss.

This consultative document proposes a set of principles to assist authorities as they make G-SIB bail-in resolution strategies operational. The principles cover:

  • disclosures on the instruments and liabilities within the scope of bail-in;

  • valuations to inform and support the application of bail-in;

  • processes to suspend or cancel the listing of securities, to notify creditors, and to deliver new securities or tradeable certificates following the entry into resolution;

  • securities law and securities exchange requirements during the bail-in;

  • processes for transferring governance and control rights and establishing a new board for the firm in resolution; and

  • market and creditor communications.

The FSB welcomes comments and responses to the questions set out in the consultative document by Friday, 2 February 2018. Responses should be sent to [email protected] with “Principles on Bail-in Execution” in the subject line. Responses will be published on the FSB website unless respondents expressly request otherwise.