The European Union’s “bail-in” rules covering failing banks are a crucial instrument, a German Finance Ministry spokesman said when asked about a Bank of Italy official’s comment that they were damaging and virtually impossible to apply, Trend reports referring to Reuters.
“The bail-in rules that we came up with are one of the key lessons from the financial crisis - they are there and will be adhered to,” the spokesman told a news conference on Monday.
Designed after the global financial crisis to shield taxpayers from costly bank bailouts, bail-in rules require investors in a bank to bear losses before public funds can be tapped.