SRB Publishes MREL Dashboard for Second Quarter of 2020
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.
Related Links
Keywords: Europe, EU, Banking, Resolution Framework, MREL Dashboard, MREL, Regulatory Capital, Basel, BRRD, SRB
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
Related Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.