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MREL reformed – Financial Stability Authority memorandum to clarify the altered framework

Publication date 24.6.2021 10.14 | Published in English on 12.7.2021 at 17.15
Press release

The MREL (Minimum Requirements for Own Funds and Eligible Liabilities) was significantly reformed as from 1 April 2021. Amendments to the law on the resolution of credit institutions and investment firms were introduced. The changes relate to the EU’s comprehensive Banking Package that has taken several years to prepare, and, in connection with which, the bank recovery and resolution directive (known as BRRD 2) was amended. As a result of the changes, the Single Resolution Board (SRB) has defined more clearly its MREL policy as it applies to large credit institutions that are directly within its jurisdiction. 

The changes in the rules and the SRB’s MREL policy mean that the Financial Stability Authority (FFSA) has had to update its memorandum describing the procedure setting the MREL requirement and the factors determining its level. The memorandum describes the content of EU legislation and national law and the precise guidelines employed by EU authorities (in particular the SRB, the EBA and the European Commission) for interpreting the issues raised. It applies to institutions directly within the FFSA’s jurisdiction (the less significant institutions, as they are known, and investment firms). The memorandum is to be updated continuously and the next round of updates will take place in the autumn in response to the EBA’s reviews of regulatory standards and other matters. 

FFSA MREL memorandum (in Finnish).

Further information:  

Resolution Expert Pekka Kainulainen (pekka.kainulainen(at) 
Head of Unit Reima Letto (reima.letto(at)

Bank resolution MREL Press release