SRB published updated MREL policy
The Single Resolution Board has published its updated MREL policy. The updated MREL policy is based on the so-called “Banking Package” adopted within the EU in June 2019, which involved amendments to the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRMR).
In connection with the publication of the MREL policy, the SRB also published its feedback statement to the industry consultation that ended on 6 March 2020, describing the main revisions made to the MREL policy following the consultation. These are related, among other things, to the treatment of groups applying a “multiple point of entry” strategy and the prerequisites for an exemption regarding internal MREL.
The updated MREL policy will serve as the basis for the MREL decisions for significant institutions within the SRB's direct remit, which are planned to be concluded in the first quarter of 2021. The published MREL policy does not incorporate the SRB's previously issued policy lines on the impact of the COVID-19 pandemic on current and future MREL requirements, but these policy lines should be taken as a single entity.
The SRB, together with national resolution authorities, will continue the preparations to ensure a common MREL implementation framework, and the related internal instructions are likely to be completed in early autumn.
The SRB complies with the SRB’s MREL policy in its policy for LSIs.
FFSA Resolution Expert Pekka Kainulainen ([email protected])