<p>Apparently it's deposit accounts, which I think means <em>both</em> savings and checking accounts. </p>

<p>No, brokerage accounts are definitely not it, as they do not represent a liability for the bank. The issue is that the 'bail-in" is a reduction in the debt the bank has towards its depositors. When you own 100 of deposits, it's the bank that owes you, but when you owe a brokerage account that owns 100 of stocks, the bank owes you nothing. So, you received a statement from the bank saying you had 200000 euros in your account, then they impose a 40% levy on the uninsured part (100000). So next month you receive a bank statement that says you have now have 160000 in your account... </p>

CC BY-SA 3.0
2016-05-09T13:42:26.827Z
2016-05-09T13:42:26.827Z
Fix.B.
<p>I've seen some articles online about the <a href="https://en.wikipedia.org/wiki/2012%E2%80%9313_Cypriot_financial_crisis" rel="nofollow">Cyprus-style bail-ins</a></p>

<p>When the bail-in actually happened there, they took money from people's accounts, but from where did they take the money?</p>

<p>For example, if someone had a CD there or a brokerage account with the bank, were those included as targets for bail-ins? Or was it limited to savings and checking accounts?</p>

<macroeconomics><banking>
How did the Bail-In in Cyprus Work?
mj_
# How did the Bail-In in Cyprus Work?

(Asked by: username_0 on 2014-12-12)

I've seen some articles online about the [Cyprus-style bail-ins](https://en.wikipedia.org/wiki/2012%E2%80%9313_Cypriot_financial_crisis)

When the bail-in actually happened there, they took money from people's accounts, but from where did they take the money?

For example, if someone had a CD there or a brokerage account with the bank, were those included as targets for bail-ins? Or was it limited to savings and checking accounts?

**Tags:** macroeconomics, banking

---

## 1 answers

### Answer by username_1 on 2016-05-09. Score: 3 | Accepted answer

Apparently it's deposit accounts, which I think means *both* savings and checking accounts.

No, brokerage accounts are definitely not it, as they do not represent a liability for the bank. The issue is that the 'bail-in" is a reduction in the debt the bank has towards its depositors. When you own 100 of deposits, it's the bank that owes you, but when you owe a brokerage account that owns 100 of stocks, the bank owes you nothing. So, you received a statement from the bank saying you had 200000 euros in your account, then they impose a 40% levy on the uninsured part (100000). So next month you receive a bank statement that says you have now have 160000 in your account...


---

