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Contingent Capital In European Union Bank Restructuring, Christoph K. Henkel, Wulf A. Kaal
Contingent Capital In European Union Bank Restructuring, Christoph K. Henkel, Wulf A. Kaal
Northwestern Journal of International Law & Business
The uncoordinated reorganization and resolution of Systemically Important Financial Institutions in different countries pose many challenges. Contingent capital provides a viable alternative for the efficient restructuring and resolution of failing financial institutions. Contingent Capital provides a mechanism for internalizing banks’ failure costs and helps return distressed financial institutions to solvency. This article offers a comparative perspective on bank resolution and restructuring in the European Union, Switzerland, the United Kingdom and Germany and shows that Contingent Capital could play a substantial role in bank restructuring.