In the coming weeks, the Single Resolution Board (SRB), which is responsible for resolving failing banks in the Eurozone, will announce its new policy on requirements for capital that can be mobilised in the event of bank resolution (minimum requirements for eligible liabilities, or 'MREL').
Readers may recall that 'MREL' constitutes a buffer of resources that may be depreciated in the event of crisis, to avoid having to make the taxpayer contribute. These requirements, which were brought in...