General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
December 20, 2017

SRB, along with the Banking Union national resolution authorities, published the 2017 policy statement on the minimum requirement for own funds and eligible liabilities (MREL); this policy statement will serve as a basis for setting the consolidated MREL targets for banks under the remit of SRB. The SRB MREL policy reflects the progress made throughout the year on the development of a tailored MREL policy.

MREL represents one of the key tools to improve banks’ resolvability, allowing resolution authorities to maintain critical functions and restore a bank’s capital position after resolution. The policy statement highlights that for the 2017 resolution planning cycle, SRB is moving from informative targets—communicated in the 2016 MREL policy—to bank-specific binding consolidated MREL targets for the majority of the largest and most complex banks under the SRB remit, including all global systemically important institutions and banks with resolution colleges. The MREL computation will remain calibrated for bail-in strategies, until transfer strategy policies are further fine-tuned and operationalized. The SRB MREL policy contains an objective set of criteria in this regard and represents a step toward bank-specific MREL targets.

SRB also adopts a proportionate approach for banks to build their MREL by setting bank-specific transition periods with a maximum horizon of four years, with interim targets for transition periods exceeding two years. The 2017 MREL policy is a new milestone in the improvement of banks’ resolvability and will be further developed in line with the SRB roadmap to MREL. To this extent, SRB will focus in 2018 on three main areas: enhancing the MREL targets based on the outcome of the SRB’s resolvability assessment; refining its location policy within groups and developing a framework for individual and internal MREL; and developing a policy for transfer strategies. 

 

Related Link: Policy Statement on MREL (PDF)

Keywords: Europe, Banking, MREL, Policy Statement, Resolution Planning, SRB

Related Insights
News

EBA Finalizes Guidelines on the STS Criteria in Securitization

EBA published the final guidelines that provide a harmonized interpretation of the criteria for a securitization to be eligible as simple, transparent, and standardized (STS) on a cross-sectoral basis throughout EU.

December 12, 2018 WebPage Regulatory News
News

OSFI Sets Domestic Stability Buffer for D-SIBs at 1.75%

OSFI set the level for the Domestic Stability Buffer at 1.75% of total risk-weighted assets, as calculated under the Capital Adequacy Requirements (CAR) Guideline.

December 12, 2018 WebPage Regulatory News
News

FSI Publishes Paper on Proportionality in Insurance Solvency Rules

FSI published a paper on proportionality in the application of insurance solvency requirements.

December 11, 2018 WebPage Regulatory News
News

BCBS Updates Framework for Pillar 3 Disclosure Requirements

BCBS published the updated framework for Pillar 3 disclosure requirements.

December 11, 2018 WebPage Regulatory News
News

EBA Issues Revised List of Validation Rules for Reporting

EBA revised the list of validation rules in its implementing technical standards on supervisory reporting.

December 11, 2018 WebPage Regulatory News
News

IMF Reports Assess the Stability of Financial System in Brazil

IMF published a report on the results of the Financial System Stability Assessment (FSSA) on Brazil.

December 11, 2018 WebPage Regulatory News
News

FED Governor Examines Pros of Imposing Capital Buffers on Large Banks

At the Peterson Institute for International Economics in Washington D.C., the FED Governor Lael Brainard summarized the financial stability outlook, highlighted areas where financial imbalances seem to be building, and touched on the related policy implications.

December 07, 2018 WebPage Regulatory News
News

US Agencies Propose Rule on Appraisals for Real Estate Transactions

US Agencies (FDIC, FED, and OCC) proposed a rule to increase the threshold level at or below which appraisals would not be required for the residential real estate transactions from USD 250,000 to USD 400,000. Comments will be accepted for 60 days from publication in the Federal Register.

December 07, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for December 2018

This week one answer was published as part of the Single Rulebook Questions and Answers (Q&A).

December 07, 2018 WebPage Regulatory News
News

FED Updates Reporting Form and Instructions for FR Y-14Q

FED published the updated reporting form FR Y-14Q for Capital Assessment and Stress Testing, along with the associated instructions.

December 06, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2325