The bail-in rules provide that, before the National Resolution Fund (or, more generally, public funds) can be utilized, the face value not only of shares and subordinated bonds but also of senior claims such as ordinary bonds and deposits of over € must be reduced.
Guy Debelle: Collateral, funding and liquidity Address by Mr Guy Debelle, Assistant Governor (Financial Markets) of the Reserve Bank of Australia, at the Conference on Systemic Risk, Basel III, Financial Stability and Regulation, Sydney, 28 June 2011. *  *  *  I thank Chris Stewart and Matt Boge for their help in preparing this talk.