The statement comes days after bondholders were angered by Credit Suisse’s move to write down to zero 6 billion Swiss francs ($17.24 billion) of its Additional Tier 1 (AT1) debt on the orders of the Swiss regulator as part of a rescue merger with UBS.

“Creditors who receive less in a resolution compared to what they would have received had the FI been liquidated would be able to claim the difference from a resolution fund that would be funded by the financial industry,” the Monetary Authority of Singapore said.

AT1s are issued by banks to help them make up the capital buffers, which regulators require them to hold. They can be converted into equity but until they are, they do not dilute a lender’s share capital.

(Reporting by Harish Sridharan in Bengaluru; Editing by Arun Koyyur)