EBA consults on technical standards on MREL reporting by Resolution Authorities

24 October 2016

The European Banking Authority (EBA) launched today a public consultation on draft Implementing Technical Standards (ITS) on the procedures and templates which Resolution Authorities should use when informing the EBA of the minimum requirements for own funds and eligible liabilities (MREL) that have been set for each institution under their jurisdiction. These standards will enable the EBA to monitor on a consistent basis the implementation of MREL across the Union. The consultation runs until 21 November 2016.
 
Resolution Authorities are required to report to the EBA the minimum requirement that has been set for each institution in their respective jurisdiction according to common procedures and using common templates.
 
The common templates proposed by the EBA cover, among other things, the overall amount of MREL required from an institution, as well as each of the components of the MREL decision as foreseen in the Regulatory Technical Standard (RTS) on MREL. In addition, Resolution Authorities are required to provide an explanation on the adjustments made to the default MREL amount. This will facilitate the EBA in monitoring the consistency in the application of the MREL framework and help assess any divergences in the levels of MREL set for comparable institutions across Member States.
 
The ITS also provide for simplified reporting for certain categories of institutions for which liquidation, rather than resolution, will be the preferred strategy. In those cases, the MREL will only be made of a loss absorption amount.
 
These ITS only cover the reporting of MREL requirements from Resolution Authorities to the EBA. Reporting by institutions to Resolution or Competent Authorities is outside of the scope of this consultation.

Consultation process 

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 21 November 2016.
 
A public hearing will then take place at the EBA premises on 14 November 2016 from 14:30 to 15:30 UK time. All contributions received will be published following the close of the consultation, unless requested otherwise.

Legal basis, background 

These draft ITS have been developed according to Article 45(17) of the BRRD, which mandates the EBA to develop procedures and templates for the identification and transmission of MREL information by Resolution Authorities to the EBA.