noun (plural)
Bank bail-ins are financial crisis response measures in which a failing bank is recapitalized by forcing losses onto its creditors and depositors rather than relying on taxpayer-funded government bailouts. This typically involves converting deposits, bonds, or other liabilities into equity to stabilize the institution internally.
Unlike bailouts, which use public funds to rescue banks, bail-ins shift the financial burden to those who have invested in or deposited money with the bank. Bail-ins are controversial and have sparked debate over financial sovereignty, especially after high-profile cases like the 2013 Cyprus banking crisis.
Bail-ins have fueled interest in decentralized alternatives like Bitcoin and DeFi, where users retain control of their own assets outside of traditional banking systems.