Bank ‘bail-ins’ on EU agenda

A regime to force bank bondholders and shareholders rather than taxpayers to take losses in failing banks has been discussed by EU finance ministers.

Member states have been reluctant to discuss such a procedure, fearing it would worsen the crisis, especially in banking.

However, those involved in the sector have now accepted the need for such a bank resolution regime, according to EU sources working on the details. According to the European Commission, a bail-in tool would have been helpful in minimising the impact of the crisis on public finances.