Bailin Vs Bailout

https://www.tradingheroes.com/bail-out-vs-bail-in/ (opens in a new tab)

Troubles bank can run into

• High loan defaults (bank cannot payback their obligations -> loaners cannot payback their loans)
• A bank run (most devastating problem for bank) is when a majority of customers of a bank all withdraw their money at the same time.

Bail In

A bail-in is basically the ability of a bank to use customer funds to keep the bank in business. It’s not quite stealing because the bank gives its customers stock in the bank, in exchange for taking the cash

Bail Out

A government feels that certain companies (like banks) are essential to the economic health of a country, so they give those companies or organizations a loan to stay in business.