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Erratum published on 17 May 2019, see Sustainability 2019, 11(10), 2816.
Article

Bail-In: A Sustainable Mechanism for Rescuing Banks

1
Faculty of Economics and Business, University of Seville, Avd. Ramón y Cajal, 1, 41018 Sevilla, Spain
2
Universidad del Pacífico, Av. Salaverry 2020 Jesús María, Lima 15072, Peru
*
Author to whom correspondence should be addressed.
Sustainability 2018, 10(10), 3789; https://doi.org/10.3390/su10103789
Received: 3 October 2018 / Accepted: 15 October 2018 / Published: 19 October 2018
(This article belongs to the Special Issue Sustainable Finance)
Until the Great Recession, rescuing banks with taxpayers’ money had been the preferred way to deal with banking crises. The dramatic effects of these practices on the real economy highlighted that bailouts are not a sustainable method to resolve troubled banks going forward. As a result, a new regulatory framework has been proposed, forcing the financial industry to move from “bailout” to “bail-in.” Understanding the implications of such a change is key to ensuring the success of these new banking rules. This article aims to build up a comprehensive and unbiased set of research articles in order to draw conclusions about the current status of the academic literature in the field of capital and loss absorption requirements. A research agenda on the topic is also proposed. The methodological approach undertaken is based on ProKnow-C (Knowledge Development Process-Constructivist). We also contribute to the development of Proknow-C methodology by adding a cross-reference extension to the original framework. The results of our analysis point out that further research has to be undertaken on the subject of loss absorption requirements. View Full-Text
Keywords: sustainable finance; banking regulation; ProKnow-C; capital requirements; loss absorption requirements; banking system sustainable finance; banking regulation; ProKnow-C; capital requirements; loss absorption requirements; banking system
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MDPI and ACS Style

Sanchez-Roger, M.; Oliver-Alfonso, M.D.; Sanchís-Pedregosa, C. Bail-In: A Sustainable Mechanism for Rescuing Banks. Sustainability 2018, 10, 3789. https://doi.org/10.3390/su10103789

AMA Style

Sanchez-Roger M, Oliver-Alfonso MD, Sanchís-Pedregosa C. Bail-In: A Sustainable Mechanism for Rescuing Banks. Sustainability. 2018; 10(10):3789. https://doi.org/10.3390/su10103789

Chicago/Turabian Style

Sanchez-Roger, Marc, María D. Oliver-Alfonso, and Carlos Sanchís-Pedregosa. 2018. "Bail-In: A Sustainable Mechanism for Rescuing Banks" Sustainability 10, no. 10: 3789. https://doi.org/10.3390/su10103789

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