EBA publishes its interim report to the Commission on the need to review MREL
The European Banking Authority (EBA) published 19.7.2016 an interim report on the minimum requirement for own funds and eligible liabilities (MREL).
The report is related to the need to revise the provisions on the application of MREL, concerning which the EBA is mandated, under the Bank Recovery and Resolution Directive (BRRD), to submit a proposal to the Commission by the end of October 2016. Article 45 of the BRRD gives a comprehensive list of items to be clarified, of which the interim report now published covers the following sub-areas:
reference base (denominator) to be used in the calculation of MREL
relationship between MREL and current regulatory requirements
criteria for including liabilities in MREL-eligible liabilities
calibration of the MREL level
application of MREL to institutions belonging to groups
The interim report can be read on EBA’s home page. It is possible to comment the report until 30.8.2016.
The EBA working group's final report will be published and delivered to the Commission by the end of October 2016. Based on the EBA report, the Commission will submit the necessary legislative proposals by the end of this year.
For further information, please contact:
Aleksi Vänttinen (Financial Stability Authority's representative in the EBA working group) tel. +358 (0)295 253 525.