Simplified bail-in implementation process

Given the structure of the Czech banking sector, bail-in is the preferred resolution tool for selected institutions, while for other institutions it is an variant resolution tool. These institutions manage the vast majority of banking assets in the Czech Republic.

In accordance with the guidelines of the European Banking Authority (EBA/GL/2023/01), the CNB is publishing the document “The CNB’s Approach to Implementing the Bail-in Tool,” (pdf, 571 kB) which clearly outlines how the CNB plans to proceed in practice when applying this resolution tool. It describes the individual phases of the process, defines the roles of the entities involved, and outlines the practical aspects of writing down or conversion of liabilities. The aim is to increase the transparency and predictability of the use of this tool.