EC Sets Out Standards for MREL Reporting by Competent Authorities
EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL). The standards cover uniform reporting templates, instructions, and methodology for MREL as part of the application of the Bank Recovery and Resolution Directive (BRRD or Directive 2014/59/EU). The Annexes to Regulation 2021/622 contain reporting templates, instructions, and validation rules. Regulation 2021/622 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Resolution authorities, in coordination with competent authorities, shall transmit, to EBA, the information specified in the templates set out in Annexes I and II to this Regulation relating to the setting of MREL in accordance with Articles 45 to 45h and Article 45m of Directive 2014/59/EU. Regulation 2021/622 also addresses simplified reporting requirement for institutions subject to waivers and for institutions for which the recapitalization amount is zero. For institutions for which the recapitalization amount set in accordance with Article 45c(2) of Directive 2014/59/EU is zero, and where no adjustments to the loss absorption amount in accordance with that paragraph are made, resolution authorities shall only transmit to the EBA the information specified in columns 0010 to 0080 and 0270 of Annex I to this Regulation.
In case of information to be reported for groups that are subject to MREL on a consolidated basis, the group-level resolution authority, in coordination with the group-level supervisory authority, shall inform EBA of the MREL of the Union parent undertaking set on a consolidated basis. Additionally, the resolution authorities taking the decisions setting the MREL, in coordination with the competent authority, shall inform EBA of the MREL to be applied to the group subsidiaries under their jurisdiction at the resolution group consolidated level and on an individual basis as applicable. Regulation 2021/622 also specifies that resolution authorities shall, by May 31 of each year, transmit the required information for the MREL applicable as of May 01 of that year. Regulation 2021/622 repeals Regulation 2018/308, which also specifies formats and templates for the transmission by resolution authorities to EBA on the information regarding their decisions setting the MREL.
Related Link: Regulation 2021/622
Effective Date: May 06, 2021
Keywords: Europe, EU, Banking, BRRD, MREL, Resolution Framework, Reporting, Implementing Technical Standards, Validation Rules, Regulatory Capital, Basel, EBA, EC
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
Bundesbank Updates AnaCredit Reporting RequirementsRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.