The Strategic Importance of Public Recapitalisation in Banking Resolution, What Ireland Can Tell
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Elise Lefeuvre
104 Recapitalisation of banks, as well as the whole banking resolution process, was fully public during the 2008 financial crisis. The Single Resolution Mechanism shifted from this approach and created a public-private system, where private individuals and entities can be called in to fund recapitalisation (bail-in). This article argues that recapitalisation (and banking resolution as a whole) should be fully public so it can be rapid, negotiation-free, and in the best interest of the State. The 2008 Irish recapitalisation illustrates well the rewards of having public recapitalisation, while it also tells where improvements are needed to protect recapitalisation process and taxpayers. Currently, the Single Resolution Mechanism has different recapitalisation methods, which creates some complexity and overlaps.
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Articles in the same Issue
- Frontmatter
- Frontmatter
- The Regulation of Corporate Governance in European Financial Market Infrastructures: A Critique
- Duty of Loyalty: Corruption of Company Directors and Prohibition of External Remuneration
- Cybersecurity and Online Formation of Companies in the Netherlands, Belgium, and Germany
- The Strategic Importance of Public Recapitalisation in Banking Resolution, What Ireland Can Tell
Articles in the same Issue
- Frontmatter
- Frontmatter
- The Regulation of Corporate Governance in European Financial Market Infrastructures: A Critique
- Duty of Loyalty: Corruption of Company Directors and Prohibition of External Remuneration
- Cybersecurity and Online Formation of Companies in the Netherlands, Belgium, and Germany
- The Strategic Importance of Public Recapitalisation in Banking Resolution, What Ireland Can Tell
