Featured Product

    SRB Updates MREL Policy to Reflect Changes in CRR 2

    June 25, 2019

    SRB updated its policy on minimum requirement for own funds and eligible liabilities (MREL) as a result of the revisions in the recent Banking Package. The package includes the revised Capital Requirements Directive (CRD V or EU Directive 2019/878), the revised Capital Requirements Regulation (CRR 2 or Regulation 2019/876), the revised Bank Recovery and Resolution Directive (BRRD 2 or Directive (EU) 2019/879), and the revised Single Resolution Mechanism Regulation (SRMR II or Regulation (EU) 2019/877). This policy update is an addendum to the 2018 SRB MREL policy for the second wave of resolution plans, which was published on January 16, 2019. The policy update covers the CRR 2 provisions , which will become applicable on June 27, 2019.

    The policy update applies to all institutions for which MREL decisions have or will be taken for the 2018 and 2019 resolution planning cycles. The addendum is intended to inform institutions in the SRB remit about regulatory changes in CRR 2 in the area of resolution and their interaction with the MREL decisions of SRB. With this addendum, SRB is also informing institutions about the implementation of CRR provisions related to the total loss-absorbing capacity (TLAC) requirements for global systemically important institutions (G-SIIs) as well as the permission regime under Article 78a of CRR, which is applicable to all institutions. 

    The major elements of the new MREL framework, other than the TLAC requirement, will become applicable on December 28, 2020. National transposition and application of BRRD 2 by member states will also be due by December 28, 2020. Until then, MREL decisions issued by SRB, including any applicable transition periods, will be based on the current legal framework of SRMR (Regulation No 806/2014) and BRRD (Directive 2014/59/EU), implemented via the 2018 MREL policy of SRB for the second wave of resolution plans. SRB intends to publish, by the beginning of 2020, the "MREL Policy 2020,” which will form the basis for MREL setting under the new framework of BRRD 2/SRMR 2 for all institutions in the resolution planning cycle starting in 2020. SRB expects to communicate these future MREL decisions to banks in early 2021.


    Related Links

    Effective Date: June 27, 2019


    Keywords: Europe, EU, Banking, MREL, TLAC, G-SII, Basel III, Systemic Risk, Resolution Framework, CRR2, SRMR2, BRRD2, SRB

    Featured Experts
    Related Articles

    CFPB Finalizes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) published a final rule that sets out data collection requirements on small business lending, under section 1071 of the Dodd-Frank Act.

    March 30, 2023 WebPage Regulatory News

    BCBS to Consult on Pillar 3 Climate Risk Disclosures by End of 2023

    The Bank for International Settlements (BIS) published a summary of the recent Basel Committee (BCBS) meetings.

    March 23, 2023 WebPage Regulatory News

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    US Congress Report Examines Data Privacy and Cybersecurity Regulations

    The U.S. Congressional Research Service published a report on banking, data privacy, and cybersecurity regulation.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    EU to Conduct One-Off Scenario Analysis to Assess Transition Risk

    The European authorities recently made multiple announcements that impact the banking sector.

    March 10, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8810