1.

The bail-in tool may be applied for any of the following purposes: to recapitalise an entity referred to in Article 2 of this Regulation that meets the conditions for resolution to the extent sufficient to restore its ability to comply with the conditions for authorisation (to the extent that those conditions apply to the entity) and to continue to carry out the activities for which it is authorised under Directive 2013/36/EU or Directive 2014/65/EU, where the entity is authorised under those Directives, and to sustain sufficient market confidence in the institution or entity; to convert to equity or reduce the principal amount of claims or debt instruments that are transferred: to a bridge institution with a view to providing capital for that bridge institution; or under the sale of business tool or the asset separation tool. Within the resolution scheme, concerning the bail-in tool, the following shall be established: the aggregate amount by which eligible liabilities must be reduced or converted, in accordance with paragraph 13; the liabilities that may be excluded in accordance with paragraphs 5 to 14; the objectives and minimum content of the business reorganisation plan to be submitted in accordance with paragraph 16.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-28 · Text as adopted (Official Journal); later amendments are not incorporated in this text.