"There is a wide cross-country variation in the institutional structure of bank failure resolution, including the role … illustrate this variation. Using data for over 1,700 banks across 57 countries, they show that banks in countries where the … deposit insurer has the responsibility of intervening failed banks and the power to revoke membership in the deposit insurance …

The European Bank Recovery and Resolution Directive (BRRD) requires Members States to grant retail depositors priority … over senior unsecured bondholders in the allocation of losses in bank resolution or the satisfaction of claims in the event … depositor priority would lead to an overprotection of depositors, increase the costs of issuing senior unsecured bonds and …