Quantitative update of the EBA MREL Report.pdf
Quantitative update of the EBA MREL Report
Quantitative update of the EBA MREL Report
The EBA published today an updated quantitative analysis on the minimum requirement for own funds and eligible liabilities (MREL). Based on the same methodology and assumptions developed in the context of the MREL report published in December 2016, the EBA updated its estimates of capacity and funding needs of a representative sample of European banks to meet MREL under alternative scenarios. In this exercise, the EBA highlighted a modest improvement in the stack of MREL eligible instruments in 2016.
EBA Report on the Application of Simplified Obligations and Waivers in Recovery and Resolution Planning
Final draft RTS on simplified obligations under BRRD (EBA-RTS-2017-11)
The European Banking Authority (EBA) published today a Report on the application of simplified obligations and waivers in recovery and resolution planning and its final draft Regulatory Technical Standards (RTS) specifying the eligibility criteria to determine whether institutions could be subject to simplified obligations when drafting such plans. The Report shows that across the EU, significantly divergent practices apply. Differences have been identified both in the assessment of institutions’ eligibility for simplified obligations, as well as in determining the reduced scope of the recovery and resolution planning requirements laid down in the Bank Recovery and Resolution Directive (BRRD). The RTS should help reduce some of the observed divergent practices by increasing harmonisation in simplified obligations eligibility assessment methodologies applied by national authorities.