The Executive Council of the International Association of Deposit Insurers (IADI) conferred leadership of a new research project called “Bail-in: implications for deposit insurance funding” on the Bank Guarantee Fund (BFG). Krzysztof Broda, Director of the Strategic Projects Department at BFG, was nominated to coordinate the project.
Bail-in is a complex tool used in the orderly liquidation of banks (resolution), and experiences from its application are limited. The research project will contribute to coming up with a better understanding of how this instrument works, the conditions under which it is to be used with respect to failing banks and the consequences of its application for deposit guarantee institutions.