Greece needs to implement reforms, or its time in the euro is going to run out soon.
Some issues to watch would include institutions with legacy issues such as a high level of non-performing loans, a possible need for recapitalization and low credit ratings.
The EU agreed new rules yesterday for bank bailouts or "bail-ins." The new system will take effect from 2016 but emergency resolutions can be brought forward in the event of banks failing in the interim period.
The U.S. already has in place plans for bail-ins in the event of banks failing. Indeed, the U.S. has conducted simulation exercises with the U.K. in recent weeks and will do so again in 2014.
Bail-ins are likely to happen at banks that are close to failure in countries that have adopted the FSB bail-in conventions and or do not have financial resources to bail-out their banks. Thus, deposits in failing banks in G20 nations may be subject to bail-ins.
A bail-in is when regulators or governments have statutory powers to restructure the liabilities of a distressed financial institution and impose losses on both bondholders & depositors.
Here some leading economists and financial commentators in Ireland give their perspective regarding the risks of bail-ins. If you manage money in any way, your own or others, it will be prudent to heed their warnings.
Preparations have been or are being put in place by the international monetary and financial authorities for bail-ins of both banks but also other financial institutions. The majority of the public are unaware of these developments, the risks and the ramifications.
The era of bondholder bailouts is ending and that of depositor bail-in is coming. The changing financial landscape post crisis poses challenges to savers and investors globally. It is important we consider how savings and investments can be protected.
More legislation is needed to rein in biggest U.S. banks because the Dodd-Frank Act has failed to guard taxpayers, the bill’s sponsors said.