On Tuesday 5 September, the European Banking Authority (EBA) published its final implementing technical standards on the reporting, by the resolution authorities, of the minimum requirement for own funds and eligible liabilities (MREL), in line with the mandate conferred upon it by the 'BRRD' banking resolution directive.
These technical standards set out the common models and procedures that the national authorities responsible for the resolution must follow when reporting to the EBA on the level of MREL established for each financial institution under their jurisdiction.
The total amount of MREL required must also be reported, along with all of the elements used in the calculation. Additionally, further explanations must be provided if a resolution authority derogates from any element of the MREL calculation methodology, for instance in order to take account of liabilities that may be fully or partially excluded from the bail-in.
The technical standards also provide for simplified reports of certain categories of banks for which liquidation, rather than resolution, is the preferred option.
“The standards will enable the EBA to monitor the consistency of MREL implementation across the EU”, the Authority states in a press release. (Original version in French by Marion Fontana)