If a bank fails in future, shareholders and certain creditors will henceforth be systematically called upon to foot a greater share of the resulting bill. This is the right course of action as it ensures that risks are borne by the investors who ultimately also took the risks.
The new regime reduces the incentives for banks to take excessive risks and then pass them on to taxpayers – the taxpayers now represent the last line of defence rather than the first. However, this has also caused the interest rates on debt instruments that are eligible for bail-  BIS central bankers’ speeches  5  in to rise.