12.5.1 Why are these characteristics relevant?

The above-mentioned relevant characteristics constitute the various ways in which burden-sharing by shareholders can be achieved. As will be explained in the following subsections, a bank can be nationalised; the bank’s shareholders can be diluted; they can contribute to a capital raising exercise; they can be left in the ‘bad bank’ or bank in liquidation (in case of a split-up of the bank); or they can be completely written-down. In addition, burden-sharing can be enhanced by a dividend ban.

The fact that there are different types of burden-sharing by shareholders raises the question which type of burden-sharing by shareholders is most common. The answer to this question is provided by the table in Annex VIII, which gives an overview of the burden-sharing by shareholders in the bank State aid cases.