Investigación

Artículo en revista académica

calendar_month Publicación: 01/06/2026

Expected Bail-in Costs, Bank Risk-taking and Real Effects

We estimate expected bail-in costs for an international sample of banks by comparing spreads of credit default swaps (CDS) that only differ in terms of whether they insure against the bailing in of bank creditors in case of distress of the bank. We estimate on average 17% higher CDS spreads due to bail-in. We find that expected bail-in costs reduce bank risk-taking, consistent with enhanced market discipline. However, firms borrowing from high-expected-costs banks are charged higher loan spreads and experience lower investments and asset growth.

Fuente: Journal of Financial Stability

Vol. 84, Article 101533