Only a handful of banks failed to meet their minimum requirements for own funds and eligible liabilities (MREL) in the event of resolution, with a shortfall of €2.3 billion for the sample as a whole (or 2.1% of risk-weighted assets - RWA), according to the semi-annual dashboard updated by the European Banking Authority (EBA) on Thursday 31 July, based on aggregated statistical information for 345 banks available at the end of 2024.
Overall, the banks meet the MREL requirements in line with the 1 January 2024 deadline set by the ‘BRRD’ Directive (2014/59) governing the resolution of a failing bank within the European Union. They indicate that financial instruments worth €242 billion will become ineligible from 2026. These instruments represent around 20% of the instruments eligible for MREL requirements other than capital, according to the EBA.
The European regulator notes that bail-in strategies remain the preferred option for dealing with RWA assets. Asset transfer strategies are preferred for smaller banks, while internal bail-in is the preferred option for larger institutions.
See the updated dashboard: https://aeur.eu/f/i2z (Original version in French by Mathieu Bion)