Bail-In

Pronunciation: /beɪl-ɪn/

Definitions of bail-in

noun a rescue procedure for a financial institution on the brink of failure, in which the institution's creditors and depositors are forced to bear some of the burden by having a portion of their debt converted into equity or written off

Example Sentences

A1 A bail-in is when a bank uses its own funds to stay afloat.

A2 During a bail-in, shareholders and creditors may lose their investments.

B1 The government implemented a bail-in strategy to prevent taxpayer money from being used to rescue failing banks.

B2 The bail-in process involves converting debt into equity to recapitalize a struggling financial institution.

C1 The decision to implement a bail-in rather than a bail-out was met with mixed reactions from the financial industry.

C2 Experts argue that bail-ins can help to create a more stable financial system by holding investors accountable for their risks.

Examples of bail-in in a Sentence

formal The government implemented a bail-in strategy to rescue the failing bank.

informal They decided to use a bail-in to save the bank from going under.

slang The bank was in trouble, so they had to do a bail-in to keep it afloat.

figurative In times of crisis, a bail-in can be like a lifeboat for struggling financial institutions.

Grammatical Forms of bail-in

• past tense: bailed-in
• plural: bail-ins
• comparative: more bail-in
• superlative: most bail-in
• present tense: bail-in
• future tense: will bail-in
• perfect tense: have bailed-in
• continuous tense: is bailing-in
• singular: bail-in
• positive degree: bail-in
• infinitive: to bail-in
• gerund: bailing-in
• participle: bailing-in

Origin and Evolution of bail-in

First Known Use: 2008 year

Language of Origin: English

Story behind the word: The term 'bail-in' originated in the financial sector as a response to the 2007-2008 global financial crisis.

Evolution of the word: Initially used to describe a process where a failing financial institution's creditors and depositors are forced to bear some of the burden of its losses, the term 'bail-in' has evolved to become a common tool for resolving financial institutions in distress and preventing taxpayer-funded bailouts.