The SRM will make use of the harmonized tools provided by the EU Bank Recovery and Resolution Directive. The inclusion of a bail-in provision in the Directive marks a radically new approach to resolving bank crises, whereby the necessary resources should be drawn first of all from the bank’s shareholders and creditors in order to avoid or minimize potential costs for the taxpayers.
Let me recall that bank deposits protected by the deposit insurance  BIS central bankers’ speeches  3  system are excluded from bail in. Besides these deposits, other deposits held by individuals and by small- and medium- sized enterprises would receive preferential treatment with respect to other instruments.