As depositors, we are unsecured creditors. In the event that a bank becomes insolvent, under "bail-in" , secured lenders, I.e. Other banks which deal with our bank will take the assets which are unsecured.
Australian banks are likely to fail in the event of overseas bank failures, as happened in 2008, due to their trillions of dollars of overseas derivative commitments. The aim is not so much to save your bank or mine, but to attempt to save as much of the world banking industry as possible, to try to avoid a total collapse.
In the next GFC America will not print trillions to bail out banks, because the USD and the US economy don't have the strength to do it again, and most likely, Republican resistance. Remember, they were calling for free market economics to prevail and for all insolvent banks to be allowed to fail in 2008.
European banks appear to be in a worse position because of German resistance to bail-out on the public purse. Hence the push for bank bail-in, coming directly from the Bank of International Settlements in Switzerland, through its arm, the Financial Stability Board.
This is how they plan to salvage as much as possible at your expense and mine.
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