SRB Publishes the 2018 Policy Statement on MREL
SRB, along with the Banking Union national resolution authorities, published the 2018 policy statement on the minimum requirement for own funds and eligible liabilities (MREL). This policy statement serves as a basis for setting binding consolidated MREL targets for banks under the remit of SRB, pertaining to the first wave of resolution plans.
MREL represents one of the key tools in enhancing the resolvability of banks. For this year, considering the need to address the specificities of the most complex groups (with more details), SRB has split the cycle for resolution planning into two waves. The first wave started in January 2018 to allow for the banks that did not have binding targets—those without presence outside the Banking Union—to be addressed first based on the MREL policy largely following the 2017 approach. The 2018 SRB policy serves as a point of reference for the determination of SRB decisions on MREL for these banks.
For the most complex banks, all of them having resolution colleges, the development of the MREL policy will continue in 2018 for the second wave of resolution plans. To improve resolvability of banks and tailor the calibration of MREL targets to bank-specific characteristics, SRB will update its general MREL policy, with focus on subordination, eligible instruments, and individual MREL targets.
Related Links
Keywords: Europe, Banking, MREL, Policy Statement, Resolution Planning, SRB
Previous Article
FASB Publishes Summary of Emerging Issues Task Force MeetingRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
