Regulatory Technical Standards on minimum requirement for own funds and eligible liabilities (MREL)

status: Adopted and published on the Official Journal

These draft Regulatory Technical Standards (RTS) aim to specify the criteria to set the minimum requirement for own funds and eligible liabilities (MREL) laid down in the Bank Recovery and Resolution Directive (BRRD).  They clarify how the institution’s capital requirements should be linked to the amount of MREL needed to absorb losses and, where necessary, recapitalise a firm after resolution. Finally, the RTS propose that for systemic institutions, resolution authorities should consider the potential need to be able to access the resolution financing arrangement if a resolution relying solely on the institution’s own resources is not possible.

Press Release

Consultation Papers