SRB has published an MREL dashboard, which is to be followed by regular quarterly reports. The dashboard is designed to give a comprehensive overview of the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) across the banks under the remit of SRB. The MREL dashboard is based on bank data reported to SRB.
The first section of the dashboard illustrates the results concerning MREL targets, eligible liabilities, and shortfalls, respectively, in 2018 and 2019 under the Bank Recovery Resolution Directive (BRRD) 1 framework. The second section covers estimates of the MREL requirements under the new BRRD2 framework with reference to the end-2019 data. The third section lays out the quarterly monitoring dashboard while the fourth section highlights recent developments on the cost of funding. The dashboard includes information provided in the context of the November 2020 edition of the Monitoring Report on Risk Reduction Indicators, prepared jointly by the European Commission Services, ECB, and SRB at the request of the President of the Eurogroup.
The data show that average BRRD1 MREL target was equal to 25.6% of the total risk exposure amount (TREA) in December 2019. The MREL shortfall for the groups in the sample was equal to EUR 73.7 billion (1.0% TREA). At the same date, the average BRRD 2 draft MREL targets including Combined Buffer Requirement (CBR) were estimated at 25.5% TREA. The corresponding draft MREL shortfall was EUR 82.7 billion (1.1% TREA). The average MREL shortfall was 1.1% TREA (EUR 82.7 billion) when the CBR was added on top of the risk-based MREL. The MREL shortfall for the groups in the sample rose to EUR 146.5 billion (2.0% TREA on average) in June 2020 from EUR 73.7 billion (1.0% TREA on average) in December 2019. The higher shortfall is driven by the increase in MREL targets, which was not offset by the increase in MREL-eligible liabilities. Shortfalls are expected to be closed according to the SRB 2020 MREL policy.
Keywords: Europe, EU, Banking, Resolution Framework, MREL Dashboard, MREL, Regulatory Capital, Basel, BRRD, SRB
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.