EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights
Autor(a) principal: | |
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Data de Publicação: | 2016 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/33579 |
Resumo: | As of 1 January 2016, all members of the European Union (EU) are required to have bail-in provisions as part of their national bank resolution and recapitalisation legislation. The bail-in of bank creditors’ claims in order to recapitalise the bank is not a new phenomenon, it was utilised in Cyprus in 2013 and has since been used in a series of rescue operations launched for struggling banks in Austria, Slovenia, Greece, Italy, Hungary, Denmark, and Portugal. One of the most obvious concerns with the bail-in tool is that it deprives bank creditors of their property, namely a right to claim repayment of a debt obligation. The object of this paper is to determine if bail-in rules actually interfere with the right to property of bank creditors and whether such interference is unjustified. The paper concludes that, firstly, bail-in amounts to an interference with peaceful enjoyment of property and, secondly, such interference cannot be justified because bail-in rules fall short of the legality and legitimacy requirements which must be met when the State interferes with the right to property. Bail-in rules infringe bank creditors’ right to property and, as such, present a legal risk to resolution authorities in Member States. |
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EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rightsRight to propertyEuropean bank recovery and resolutionBail-inAs of 1 January 2016, all members of the European Union (EU) are required to have bail-in provisions as part of their national bank resolution and recapitalisation legislation. The bail-in of bank creditors’ claims in order to recapitalise the bank is not a new phenomenon, it was utilised in Cyprus in 2013 and has since been used in a series of rescue operations launched for struggling banks in Austria, Slovenia, Greece, Italy, Hungary, Denmark, and Portugal. One of the most obvious concerns with the bail-in tool is that it deprives bank creditors of their property, namely a right to claim repayment of a debt obligation. The object of this paper is to determine if bail-in rules actually interfere with the right to property of bank creditors and whether such interference is unjustified. The paper concludes that, firstly, bail-in amounts to an interference with peaceful enjoyment of property and, secondly, such interference cannot be justified because bail-in rules fall short of the legality and legitimacy requirements which must be met when the State interferes with the right to property. Bail-in rules infringe bank creditors’ right to property and, as such, present a legal risk to resolution authorities in Member States.Veritati - Repositório Institucional da Universidade Católica PortuguesaMaguze, Tracy Chiyedza2021-06-11T09:40:10Z20162016-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.14/33579eng2052-187110.14324/111.2052-1871.070info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:39:15Zoai:repositorio.ucp.pt:10400.14/33579Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:27:18.404396Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights |
title |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights |
spellingShingle |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights Maguze, Tracy Chiyedza Right to property European bank recovery and resolution Bail-in |
title_short |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights |
title_full |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights |
title_fullStr |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights |
title_full_unstemmed |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights |
title_sort |
EU Bank recapitalisation and the bail-in option: an analysis of the effects of mandatory bail-in on creditors’ property rights |
author |
Maguze, Tracy Chiyedza |
author_facet |
Maguze, Tracy Chiyedza |
author_role |
author |
dc.contributor.none.fl_str_mv |
Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Maguze, Tracy Chiyedza |
dc.subject.por.fl_str_mv |
Right to property European bank recovery and resolution Bail-in |
topic |
Right to property European bank recovery and resolution Bail-in |
description |
As of 1 January 2016, all members of the European Union (EU) are required to have bail-in provisions as part of their national bank resolution and recapitalisation legislation. The bail-in of bank creditors’ claims in order to recapitalise the bank is not a new phenomenon, it was utilised in Cyprus in 2013 and has since been used in a series of rescue operations launched for struggling banks in Austria, Slovenia, Greece, Italy, Hungary, Denmark, and Portugal. One of the most obvious concerns with the bail-in tool is that it deprives bank creditors of their property, namely a right to claim repayment of a debt obligation. The object of this paper is to determine if bail-in rules actually interfere with the right to property of bank creditors and whether such interference is unjustified. The paper concludes that, firstly, bail-in amounts to an interference with peaceful enjoyment of property and, secondly, such interference cannot be justified because bail-in rules fall short of the legality and legitimacy requirements which must be met when the State interferes with the right to property. Bail-in rules infringe bank creditors’ right to property and, as such, present a legal risk to resolution authorities in Member States. |
publishDate |
2016 |
dc.date.none.fl_str_mv |
2016 2016-01-01T00:00:00Z 2021-06-11T09:40:10Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/33579 |
url |
http://hdl.handle.net/10400.14/33579 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
2052-1871 10.14324/111.2052-1871.070 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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