September 05, 2017

EBA published the final draft implementing technical standards (ITS) on procedures and templates for the identification and transmission of information by resolution authorities to EBA, on minimum requirements for own funds and eligible liabilities (MREL) under Article 45(17) of Bank Recovery and Resolution Directive (BRRD or Directive 2014/59/EU). This regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

The ITS only cover the reporting of MREL requirements from Resolution Authorities to EBA while reporting by institutions to Resolution or Competent Authorities is outside of the scope of these ITS. The ITS also set out three reporting templates (in a separate Excel document) as Annexes I, II, and III. The ITS provide for simplified reporting for certain categories of institutions for which liquidation, rather than resolution, will be the preferred strategy. In these cases, the MREL will only be made of a loss-absorption amount. 
The Resolution Authorities are required to report, to EBA, the MREL that has been set for each institution in their respective jurisdiction according to common procedures and using common templates. Under the common templates, resolution will report the overall amount of MREL required from an institution, as well as each of the components of the MREL decision as laid down in the regulatory technical standard on MREL. Where the Resolution Authorities depart, in compliance with the regulatory technical standards on MREL, from a default component of the MREL methodology (for example, to take into account liabilities that are reasonably likely to be fully or partially excluded from bail-in), they are required to provide an explanation on the adjustments made. These standards will enable EBA to monitor the consistency of MREL implementation across the EU. 

 

Related Links

ITS on MREL Reporting by Resolution Authorities (PDF)

Reporting Templates (XLSX)

Regulatory Technical Standard on MREL

BRRD (PDF)

Keywords: Europe, EU, Banking, MREL, BRRD, Resolution, Reporting, EBA

Related Articles
News

EC Amends Regulation Supplementing Solvency II Directive

EC published the Delegated Regulation (EU) 2019/981 that amends the Regulation (EU) 2015/35, which supplements Solvency II Directive (2009/138/EC) on the taking-up and pursuit of the business of insurance and reinsurance.

June 18, 2019 WebPage Regulatory News
News

IOSCO Report Examines Application of International Cyber Standards

IOSCO published a final report that examines the application of the three internationally recognized cyber standards and frameworks by IOSCO member jurisdictions.

June 18, 2019 WebPage Regulatory News
News

PRA Launches 2019 Stress Test Exercise for Life and General Insurers

PRA has launched the biennial insurance stress test and is asking the largest regulated life and general insurers to provide information about the impact of a range of stress tests on their business.

June 18, 2019 WebPage Regulatory News
News

PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework

PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.

June 17, 2019 WebPage Regulatory News
News

FSB Assesses Implementation of Compensation Standards and Principles

FSB published the sixth progress report on the implementation of its principles and standards for sound compensation practices in financial institutions.

June 17, 2019 WebPage Regulatory News
News

IMF Publishes Reports on 2019 Article IV Consultation with Ireland

IMF published its staff report and selected issues report under the 2019 Article IV consultation with Ireland.

June 17, 2019 WebPage Regulatory News
News

EBA Updates Data on Deposit Guarantee Schemes in EU

EBA published the 2018 data on two key concepts in the Deposit Guarantee Schemes Directive (DGSD)—namely, available financial means and covered deposits.

June 17, 2019 WebPage Regulatory News
News

SNB Updates Form for Reporting Solvency Risk of Counterparties

SNB published the survey (Form Release 5.01) and related documentation for reporting solvency risk of counterparties in the interbank sector (ARIS).

June 17, 2019 WebPage Regulatory News
News

ISDA Studies Variation in Global Implementation of Margin Requirements

ISDA published a paper that highlights the main areas of difference in the implementation of margin requirements for non-cleared derivatives across jurisdictions and makes recommendations on how to resolve these variations.

June 17, 2019 WebPage Regulatory News
News

US Agencies Finalize Rule to Streamline Reporting for Small Banks

US Agencies (FDIC, FED, and OCC) adopted a final rule to streamline the regulatory reporting requirements for small institutions.

June 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3265