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    EC Sets Out Standards for MREL Reporting by Competent Authorities

    April 16, 2021

    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

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