Key points

• Bail-in within resolution has been at the forefront of the regulatory agenda to end too-big-to-fail. The article examines Canada’s recently introduced bail-in framework through a comparative lens, against the backdrop of the Covid-19 pandemic.
• It argues that Canada embraces a less stringent approach than its international counterparts in applying the bail-in tool and permitting use of public funds. This flexible approach is preferable as it can help the stabilization of the bailed-in bank by facilitating its access to liquidity.
• Yet, the administration of the bail-in tool will not be without difficulties in Canada. The extensive administrative discretion and opaqueness embedded in the regime comes at the expense of the rule of law and creditor protection.
• Further challenges arise from the country’s highly concentrated financial system and interdependencies among the large banks which can also result in a reluctance to turn to bail-in if systemic solvency concerns are present.

中文翻译：

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从（无）救助到救助：对加拿大银行资本重组制度的比较评估

关键点

• 解决方案内的纾困一直处于监管议程的最前沿，以结束“大而不倒”。这篇文章在 Covid-19 大流行的背景下，通过比较的视角审视了加拿大最近推出的纾困框架。
• 它认为，加拿大在应用纾困工具和允许使用公共资金方面采用的方法不如其国际同行严格。这种灵活的方法是可取的，因为它可以通过促进获得流动性来帮助受纾困银行的稳定。
• 然而，纾困工具的管理在加拿大并非没有困难。该制度中广泛的行政自由裁量权和不透明性是以牺牲法治和债权人保护为代价的。
• 该国高度集中的金融体系和大型银行之间的相互依存关系带来了进一步的挑战，如果存在系统性偿付能力问题，这也可能导致不愿转向纾困。