Basel III and Beyond: The trillion dollar question: Can bail-in capital bail out the banking industry?

Bail-in capital is central to the regulatory reform of banks, and can help to restore confidence in the industry. The Basel Committee on Banking Supervision have announced that all non-core equity capital instruments would have to have a bail-in feature from 1 January 2013.

Regulators and banks now have just one year to make this complex regulation workable, and banks that do it well will have greater competitive advantage over other institutions.

The regulatory environment for banks is undoubtedly complex. In this publication, we examine the challenges and practical issues that need to be addressed before bail-in capital can become a reality.