The ultimate effect of bail-in on funding costs and its success as a market discipline device will depend on the final design of bail-in and how markets see it being used in practice, European Central Bank Executive Board member Benoit Coeure said Monday. "This calls for an early implementation of bail-in as a way to reduce uncertainty for banks themselves and market participants, and allow for a once-for-all repricing of risk," Coeure said. There are still two sources of uncertainty with regards to the bail-in rules, he observed. First, about the timing of the implementation of bail-in and the second is about the degree of discretion national resolution authorities will have in applying the bail-in rules. He concluded that bail-in rules will be conducive to a better monitoring of banks' risk behavior and will thereby lead to a better banking system.