Importance The article analyzes the practices and trends in using the bail-in mechanism in the world. Objectives The aim is to review the possibility of applying the bail-in mechanism in Russia and its efficiency based on the analysis of best practices, consider alternatives and influence of the mechanism on rating of financial institutions. Methods The study draws on general and specific methods of scientific knowledge, i.e. empirical investigation (comparison, data collection and analysis), comparative examination, and synthesis of theoretical and practical material. To process and systematize the information, I used grouping, classification and a systems approach. Results The study reveals that the new rules are intended to streamline the system of troubled banks' restructuring and liquidation. The bail-in mechanism has appeared recently, therefore, the experience in its application is not extensive. Conclusions and Relevance It is not clear yet how to determine the date and amount of conversion. The issue of the price of funds conversion into equity is controversial. Another complex issue is the impact of bail-in on the rating assigned by international agencies.
Dzhagityan E.P. [Financial Stability Board: Is institutionalization a reality?]. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations, 2015, no. 11, pp. 78–90. (In Russ.)
Dzhagityan E.P., Sil'vestrov S.N. [A shift of the U.S. banking regulation paradigm: From short-term benefits to long-term risk management priorities]. Den'gi i kredit = Money and Credit, 2013, no. 8, pp. 53–61. (In Russ.)
Pakhomova S.A. [Grounds for banking license revocation in the Russian Federation]. Molodoi uchenyi = Young Scientist, 2015, no. 24, pp. 526–529. (In Russ.)
Genkin A.S. [Depositors and banks: Arising problems and constructive solutions]. Bankovskie uslugi = Banking Services, 2016, no. 2, pp. 33–36. (In Russ.)
Zalibekova D.Z. [Depositor protection issues]. Teoriya i praktika obshchestvennogo razvitiya = Theory and Practice of Social Development, 2014, no. 15, pp. 106–108. (In Russ.)
Dmitriev I.V. [Increasing the trust in the banking sector and developing the deposit insurance system in Russia]. Vestnik MGIMO Universiteta = Vestnik MGIMO-University, 2014, no. 1, pp. 158–163. (In Russ.)
Akramov T.R. [Deposit insurance scheme as an element of sustainability of the banking sector]. Den'gi i kredit = Money and Credit, 2013, no. 6, pp. 55–58. (In Russ.)
Altynnikova L.A., Nikeenko T.A. [Deposit insurance system in Russia: Main shortcomings and areas for development]. Ekonomicheskaya sreda = Economic Environment, 2014, no. 2, pp. 128–131. (In Russ.)
Mateikovich M.S., Kirakosyan A.V. [Deposit insurance scheme: Theory and practice]. Vestnik Tyumenskogo Gosudarstvennogo universiteta. Sotsial'no-ekonomicheskie i pravovye issledovaniya = Bulletin of Tyumen State University. Socio-Economic and Legal Studies, 2011, no. 3, pp. 146–153. (In Russ.)
Tulyai E.Yu. [The deposit insurance system under the banking crisis]. Pravovye problemy ukrepleniya Rossiiskoi gosudarstvennosti:materialy Vserossiiskoi nauchno-prakticheskoi konferentsii [Proc. All-Russian Sci. Conf. Legal Problems of Strengthening the National Identity of Russia]. Tomsk, Tomsk University Publ., 2015, pp. 127–130. (In Russ.)
Kovalev A.E. The Issue of Economic Justice of Bail-In Use in Rehabilitation of ‘Weak’ Banks. Innovatsionnaya nauka = Innovative Science, 2016, no. 3-1, pp. 127–128.
Sommer J.H. Why Bail-In? And How! FRBNY Economic Policy Review, 2014, vol. 20, no. 2, pp. 207–228.
Smyslov D.V. [G20 Saint Petersburg summit]. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Economy and International Relations, 2014, no. 12, pp. 15–25. (In Russ.)
Akramov A.R. [Commercial banks' bankruptcy prevention measures: Evolution of institutions and mechanisms]. Den'gi i kredit = Money and Credit, 2013, no. 8, pp. 21–26. (In Russ.)
Timokhina A.V. [A modern approach to the ‘too big to fail’ problem in the financial sector]. Bankovskie uslugi = Banking Services, 2013, no. 5, pp. 18–22. (In Russ.)
Kornivskaya V.O. [Minimizing the participation of the State in the support to depressed financial institutions: European experience in the context of Ukrainian realities]. Ekonomicheskaya teoriya = Economic Theory, 2015, vol. 12, no. 2, pp. 63–77. (In Russ.)
Shabaeva V.I., Dunkel' G. [A single mechanism for rehabilitation of troubled banks in Europe: Assessment of the proposal to the EU Commission]. Sotsial'nye i gumanitarnye nauki. Otechestvennaya i zarubezhnaya literatura. Seriya 2: Ekonomika = Social and Human Sciences. Domestic and Foreign Literature. Series 2: Economics, 2014, no. 2, pp. 88–92. (In Russ.)
Melaschenko P., Reynolds N. A Template for Recapitalising Too-Big-to-Fail Banks. BIS Quarterly Review, 2013, no. 6, pp. 25–39.