ABSTRACT
Beyond the supervision of financial institutions in “ordinary” or “normal” times, the continuity of the provision of financial services in crisis times should also be ensured. There are several arguments in favor of setting up mechanisms to restructure troubled financial institutions. After discussing the different instruments for bailout, several tools that may be triggered by institutions are reviewed: voluntary exchange and contingent capital. Different tools are available for bailout. Bail-in is a major component of resolution, which is studied in detail in the following section, together with the other instruments available to resolution authorities. However, it is too early to conclude how the reforms implemented have changed the holding of banks' debt by financial institutions and in particular institutional investors. The new objectives of financial resolution, the differences between the EU and US frameworks, the economic impact of financial resolution and the issue of cross-border resolution are successively reviewed.
