Global regulators and bankers are weighing the merits of establishing a system that would impose losses on bondholders of failing banks before taxpayers have to rescue them – a concept known as a creditor bail-in.

The idea is being considered by the Financial Stability Board, a grouping of finance ministers, central bankers and regulators from around the world. The FSB is expected to offer its opinion on the concept when it reports to heads of state from the Group of 20 developed and developing nations in November.