On Friday 12 September, the European Banking Authority (EBA) published draft technical standards that introduce semi-annual reporting of decisions relating to the minimum ‘MREL’ bank capital requirements that can be mobilised in the event of the resolution of a large failing bank.
The national competent authorities will have to communicate: - each year, on 18 March, the ‘MREL’ requirements applicable from 31 December of the previous year; - each year, on 16 September, the ‘MREL’ requirements applicable since 30 June are published.
At present, the national competent authorities must communicate to the EBA, each year at the end of May, their decisions relating to the ‘MREL’ requirements taken each year at the beginning of May. This means that decisions adopted after the 1st of May are not taken into account in the European Authority’s publications and assessment until the following year.
More frequent reporting will also make it possible to take account of other data publication deadlines, such as the EU resolution planning scoreboard and information on a large bank’s total loss-absorbing capacity (TLAC), the EBA points out in its press release.
If approved, the new standards will apply from early 2026.
To see the final draft standards: https://aeur.eu/f/ife (Original version in French by Mathieu Bion)