Based on this recognition, since this September the Bank has introduced various measures to reduce such risk through providing liquidity to financial institutions and expanding the range of eligible corporate debt accepted as collateral.
The precise design of a bank resolution scheme is a highly political decision, since it inevitably implies redistributive effects, since stakeholders in different countries can be affected in quite different ways.15 I fully agree with the principles laid out in the recent Commission´s proposal with its broad approach about early intervention powers and the general bail-in rules with a precise definition of the pecking order of different type of creditors and depositors.16 I should stress that when I am talking about a resolution scheme, I am not referring to the bailing out of banks with public money.