{"id":50691,"date":"2026-06-10T09:00:00","date_gmt":"2026-06-10T07:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=50691"},"modified":"2026-06-08T15:43:41","modified_gmt":"2026-06-08T13:43:41","slug":"bail-in-are-my-savings-secure","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/bail-in-are-my-savings-secure\/","title":{"rendered":"Bail-in: Are my savings secure?"},"content":{"rendered":"<div class=\"component text\">\n  <div class=\"container\">\n\n\n    <div class=\"row\">\n      <div class=\"col  col-lg-8  offset-lg-2\">\n        <h3><b>The multiple bank failures that took place during the 2008 financial crisis familiarised us with the concept of a bailout, a mechanism whereby a government uses public money to rescue financial institutions. However, there is another, less well-known option where shareholders, creditors, and depositors can take over the losses.<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Big banks have become used to playing Russian roulette with money that is not theirs. <\/span><b>If business is good, they keep the profits, while if it goes badly, the losses are socialised at the taxpayer&#8217;s expense.<\/b><span style=\"font-weight: 400;\"> This is a globalised phenomenon that has been repeated over time and became evident with the multiple bank bailouts and financial sector restructuring that took place during the 2008 financial crisis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, to avoid the collapse of the banking system, the first option for many countries was to bail out ailing institutions or, in other words, <\/span><b>use taxpayer&#8217;s money to cover\u00a0the red numbers caused by the irresponsible financial managemen<\/b><span style=\"font-weight: 400;\">t of the bankrupt institutions&#8217; management teams.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the case of Spain, major international organisations estimate the costs of the bank bailout at 6% of GDP. More than<\/span><b> 64 billion euros in public money was injected into the banks, much of which has already been written off <\/b><span style=\"font-weight: 400;\">after the banks have only returned a tiny amount to taxpayers.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>External bailout vs. internal recapitalisation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The two basic models currently used by the financial system to help struggling banks are the bailout or external rescue and the bail-in or internal recapitalisation. While in a bailout the state, i.e. the public as a whole, bears the cost of recapitalisation, <\/span><b>in the case of a bail-in the losses are borne by shareholders, creditors and ultimately depositors,<\/b><span style=\"font-weight: 400;\"> as happened in Cyprus in 2013. The concept of bail-in is based on the notion that if the bank needs to rebalance its balance sheet, it must first use its own capital.<\/span><\/p>\n<p><b>Since January 2016, a bail-in system has been in force in the European Union. <\/b><span style=\"font-weight: 400;\">According to this resolution mechanism, shareholders receive the first blow. If this does not stabilise the bank, subordinated creditors take over. Next in line are the holders of senior bonds and, finally, uninsured depositors, i.e. those with more than 100,000 euros in their accounts, with preference given to the deposits of large companies over those of households and SMEs, while small depositors remain unaffected.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is therefore a mechanism designed to <\/span><b>minimise the possibility that the costs of resolving a non-viable institution will be borne by taxpayers<\/b><span style=\"font-weight: 400;\">, while at the same time ensuring that systemically important institutions are resolved without endangering financial stability.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Can the bank or the State take my savings in case of bail-in or bankruptcy?<\/b><\/h3>\n<p><b>Yes, if you have more than \u20ac100,000. <\/b><span style=\"font-weight: 400;\">If you have less than \u20ac100,000, you will be excluded from the bail-in and will be covered by the Deposit Guarantee Fund in case of bankruptcy. This body guarantees the return of money from savings accounts, current accounts and fixed-term deposits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let us remember that <\/span><b>the FGD guarantees 100,000 euros per depositor and institution.<\/b><span style=\"font-weight: 400;\"> Therefore, to insure higher amounts, it is advisable to have the capital distributed among different entities, without exceeding 100,000 euros in any one of them. Alternatively, if an account with 200,000 euros is shared by two people, each of them would have 100,000 euros insured.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another option is to open a current account with a fintech such as <\/span><b>11Onze, which operates through an Electronic Money Institution (EMI) and is required by law to insure 100% of its customers&#8217; deposits<\/b><span style=\"font-weight: 400;\"> in the event of bankruptcy, regardless of the amount.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Are there any real examples of bail-in?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In Spain, on 7 June 2017, Banco Popular was the first Spanish bank to be bailed-in under the European Union&#8217;s new framework for bank resolution. <\/span><b>Shareholders and subordinated debt holders lost their investment,<\/b><span style=\"font-weight: 400;\"> and the bank was sold for one euro to Banco Santander, thus avoiding the use of public money. In this case, depositors, even if they had more than 100,000 euros in savings, did not lose their money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bank bailout in Greece in 2012 led to the liquidation of Laiki Bank and the restructuring of the Bank of Cyprus through a bail-in. In this case, customers with up to \u20ac100,000 in savings did not lose their money, but <\/span><b>big depositors lost a large part of their savings <\/b><span style=\"font-weight: 400;\">or, in some cases, this money was converted into shares.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>If you want to discover the best option to protect your savings, enter <\/b><a href=\"https:\/\/serveis.11onze.cat\/en\/preciosos-11onze\"><b>Preciosos 11Onze<\/b><\/a><b>. We will help you buy at the best price the safe-haven asset par excellence: physical gold.<\/b><\/p>\n\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<div class=\"component cards\">\n  <div class=\"container\">\n    <div class=\"row\">\n      <div class=\"col col-xl-8 offset-xl-2\">\n        <h1>If you liked this article, we recommend:<\/h1>\n        <div class=\"cards__wrapper\">\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/guarantee-funds-sufficiently-guaranteed\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/10\/THUMBNAIL_FDG_SON_SEGURS-800x548.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">11Onze<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Are guarantee funds sufficiently guaranteed?<\/strong><\/p>\n              <span class=\"card-time\">4 min read<\/span>\n              <p class=\"card-text small\">Economic experts have been warning for some time about a&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/does-banking-supervision-work\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2023\/05\/THUMBNAIL_SUPERVISIO_BANCARIA-800x533.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Finances<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Does banking supervision work?<\/strong><\/p>\n              <span class=\"card-time\">5 min read<\/span>\n              <p class=\"card-text small\">The cycle of financial crises in recent decades has&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/banking-collapse-announced-friday\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2023\/05\/THUMBNAIL_COLAPSE_BANCARI-800x446.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Economy<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>The banking collapse will be announced on a Friday<\/strong><\/p>\n              <span class=\"card-time\">5 min read<\/span>\n              <p class=\"card-text small\">Another US bank has failed, central banks offer&#8230;<\/p>\n            <\/div>\n          <\/div>\n\n              <\/div>\n              <br>\n              <br>\n              <div class=\"cards__wrapper\">\n\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":71,"featured_media":50703,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1],"tags":[20],"class_list":["post-50691","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-finances"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bail-in: Are my savings secure? -11Onze<\/title>\n<meta name=\"description\" content=\"Can banks keep their customers&#039; deposits to cover their losses? 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