“shareholders and creditors” are not depositors.
Headline doesn’t match story. I only read what’s posted here though.
That’s how I read it, too. But with the source being the Bank of Canada, it gives pause.
Apparently, poster has changed the headline. Not correct.
Following link, it is part of a canada budget titled:
Chapter 8 – Tax Fairness and a Strong Financial Sector
There is a subsection on that page titled:
Introducing a Bank Recapitalization “Bail-in” Regime
Seizing depositor accounts is NOT part of the plan per the link.
The bank “borrows” money from depositors, the deposits are liabilities with, under this scenario, them being unsecured creditors.