Analyzing policy options in the resolution of systemically important banks : comparing the "bailout" and "bail-in" tool in selected case studies

The global financial crisis brought an unprecedented increase in public spending, which helped to stabilize the banking sector, but in many countries changed the market structure, incentives to take risks, cost of capital and competitive conditions. The post-crisis new resolution framework was motivated by the need to limit and control public spending, but its implementation showed a mixed picture. Thus, the aim of this chapter was to compare different restructuring and resolution programs for large banks, based on selected case studies. For the bailout tool, Deutsche Bank, the ING Group and the Royal Bank of Scotland (RBS) are compared. Then, selected resolution cases led by the Single Resolution Board (SRB) and the National Resolution Authorities (NRA) are compared, with an aim to analyze how successful was the restructuring of large banks under the bailout and bail-in regimes.