The successful bail-in of creditors in African Bank, a small South African monoline lender, provides an opportunity to evaluate the intended and unintended consequences of new resolution tools. Using a dataset that matches quarterly, daily, and financial-instrument level data, I show that the bail-in led to money-market funds “breaking the buck”, triggering significant redemptions and some financial contagion. To limit potential systemic effects, the authorities used complementary interventions, including imposing discretionary liquidity restrictions on mutual funds and market-making facilities for affected financial instruments. This supported a sustainable restructuring of the bank and reduced financial spillovers. The lesson is that future interventions using these new resolution tools should take into account the potential unintended systemic implications, particularly in smaller jurisdictions where there is a high degree of interconnectedness between bank and nonbank financial institutions.

中文翻译：

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债权人纾困可以引发传染吗？新兴市场的经验*

非洲一家小型单行贷款人非洲银行成功保释债权人，为评估新的解决工具的预期和非预期后果提供了机会。通过使用与季度，每日和金融工具级别数据相匹配的数据集，我证明了纾困措施导致货币市场基金“跌破了钱”，引发了大笔赎回和一些金融危机。为了限制潜在的系统性影响，当局采取了补充性干预措施，包括对互助基金和受影响金融工具的做市工具施加酌处性的流动性限制。这支持了银行的可持续重组并减少了财务外溢。