The Financial Stability Authority has updated its MREL policy memorandum
The Financial Stability Authority (FFSA) has updated its policy memorandum on the minimum requirement for own funds and eligible liabilities (MREL).
The updated memorandum takes into account the policy lines laid out in the first-wave MREL policy paper (”2018 SRB Policy for the first wave of resolution plans”) published by the SRB in 2018. The most significant change concerns the definition of the MREL for institutions whose primary resolution strategy is another than “whole bank bail in”. In addition, the memorandum describes the impacts of Brexit from the point of view of application of the MREL.
The updated FFSA memorandum on the application of the MREL regulation is available here.
The memorandum does not yet take into account the additions based on amendments to the Bank Recovery and Resolution Directive (so-called BRRD2 package), but these will be incorporated into the memorandum gradually during the year starting in autumn when the amendments take binding effect and the SRB has redefined its policy papers.