- Question ID
-
2021_5792
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- MREL
- Article
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16a
- Paragraph
-
1
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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n/a
- Type of submitter
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Resolution authority
- Subject matter
-
Combined buffer requirement on top of MREL consolidation level
- Question
-
Assuming that the consolidated resolution group level pursuant to Article 45c (3) BRRD does not correspond to the prudential consolidation level in accordance with Article 11 CRR, which consolidation level is relevant in terms of distribution restrictions according to Article 16a BRRD?
- Background on the question
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If the consolidated resolution group level and the prudential consolidation level do not correspond, the following situation could occur: On top of the MREL requirement expressed in %TREA, the CET1 available at consolidated resolution group level is sufficient to meet the CBR calculated at such level, but insufficient, if calculated at prudential consolidation level. The CET1 available at prudential consolidation level is again sufficient to meet the CBR calculated at prudential consolidation level. This leads to the question, whether such case would trigger distribution restrictions pursuant to Article 16a BRRD. On the one hand, the MREL target is set at consolidated resolution group level and needs to be fulfilled with own funds and eligible liabilities at such level, on the other hand, the CBR is set at, and can be met by CET1 available, at prudential consolidation level.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
This question has been rejected because the objective of the Q&A tool is not to answer questions that would require a modification the legal framework.
The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts. For further information on the purpose of this tool and on how to submit questions, please see 'Additional background and guidance for asking questions'
- Status
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Rejected question