This can be done by respecting the hierarchy of creditors in the event of insolvency, i.e. the order in which creditors will suffer losses in a bail-in. In order to enhance legal certainty and predictability, a clear pecking order has to be established regarding the financing of resolution measures.
Losses and resolution costs should first and foremost be borne by the shareholders and subsequently by the creditors of the failing institution. Only at that point should the private sector be called in to finance resolution via the resolution fund.