Should the marketing of subordinated debt be restricted/different in one way or the other? What to do in the case of mis-selling?

An important prerequisite for the efficiency of bail-in as a regulatory tool is that debt holders are able to bear the cost of a bail-in. Examining European banks’ subordinated debt we caution that households may be inve
An important prerequisite for the efficiency of bail-in as a regulatory tool is that debt holders are able to bear the cost of a bail-in. Examining European banks’ subordinated debt we caution that households may be investors in bail-in able bonds. Since households do not fulfil the aforementioned prerequisite, we argue that European bank supervisors need to ensure that banks’ bail-in bonds are held by sophisticated investors. Existing EU market regulation insufficiently addresses mis-selling of bail-in instruments.
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Metadaten
Author:Martin Götz, Tobias Tröger
URN:urn:nbn:de:hebis:30:3-395948
URL:http://safe-frankfurt.de/policy-center/publications/policy-publ-detailsview/publicationname/should-the-marketing-of-subordinated-debt-be-restricteddifferent-in-one-way-or-the-other-what-to-do-in-the-case-of-mis-selling.html
Parent Title (English):SAFE white paper series, 35
Series (Serial Number):SAFE white paper series (35)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Date of Publication (online):2016/03/21
Date of first Publication:2016/03/21
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2016/04/05
Tag:BRRD; Bail-in; EU market regulation; subordinated debt
Pagenumber:22
HeBIS PPN:381006867
Institutes:Wirtschaftswissenschaften
House of Finance (HoF)
Center for Financial Studies (CFS)
Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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