SRB published the second part of its 2018 policy on the minimum requirement for own funds and eligible liabilities (MREL) pertaining to the second wave of resolution plans. The second wave of resolution plans cover the most complex banking groups. This second part of the 2018 MREL policy introduces a series of new features to strengthen the MREL approach and the resolvability of banks in the Banking Union and prepare banks for future regulatory changes in the context of the “Banking Package.” The main new features are a refined approach for eligible instruments for consolidated MREL-targets, increased binding subordination requirements, and, last but not least, the introduction of binding MREL targets at the individual level.
MREL represents one of the key tools in enhancing resolvability of banks. SRB continues to develop its MREL policy, step-by-step. This gives banks the clarity needed on the SRB requirements for them to build up MREL. SRB will continue to develop its MREL policy going forward. After the adoption of the Banking Package, the SRB policy will need to be adapted to address in particular the total loss-absorbing capacity (TLAC) implementation and the new internal MREL requirements.
Keywords: Europe, EU, Banking, MREL, Resolution Planning, TLAC Implementation, Banking Union, MREL Policy, SRB
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The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.
The European Commission, or EC, finalized the Implementing Regulation 2021/2017 with respect to the benchmark portfolios, reporting templates, and reporting instructions for the supervisory benchmarking of internal approaches for calculating own funds requirements.
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
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