bank resolution

Can creditor bail-in trigger contagion? The experience of an emerging market

The successful bail-in of creditors in African Bank, a small South African monoline lender, provides an opportunity to evaluate the intended and unintended consequences of new resolution tools. Using a data set that matches quarterly, daily and nancial-instrument level data, I show that the bail-in led to money-market funds `breaking the buck', triggering signicant redemptions and some nancial contagion.
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