BERLIN (Reuters) – The European Union’s “bail-in” rules covering failing banks are a crucial instrument, a German Finance Ministry spokesman said when asked about a Bank of Italy official’s comment that they were damaging and virtually impossible to apply.
“The bail-in rules that we came up with are one of the key lessons from the financial crisis – they are there and will be adhered to,” the spokesman told a news conference on Monday.
Designed after the global financial crisis to shield taxpayers from costly bank bailouts, bail-in rules require investors in a bank to bear losses before public funds can be tapped.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.