Markets must be convinced that even a large, internationally active bank that runs into trouble can and will be resolved should there be a need to do so. Markets must be convinced that shareholders, creditors and the banking industry will pick up the bill and not the taxpayer. In short: the bail-in is “in” and the bail-out is “out”!
I am aware that this is easier said than done. It will require firm political will. But it is very much worth the effort. Thank you very much for your attention. 4  BIS central bankers’ speeches