Shearman & Sterling LLP | FinReg | EU Single Resolution Board Publishes Revised MREL Policy
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  • EU Single Resolution Board Publishes Revised MREL Policy
    The EU Single Resolution Board has published a revised policy on minimum requirements for own funds and eligible liabilities. The policy is applicable to Eurozone banks and reflects the changes made in 2019 to the EU Banking Package (which includes the Bank Recovery and Resolution Directive, the Capital Requirements Regulation and the Capital Requirements Directive).
    In particular, the revised policy:
    • Modifies and extends the SRB’s approach to calibration;
    • Sets subordination requirements in accordance with the new Banking Package framework;
    • Expands the scope of non-resolution entities for which the SRB will adopt internal MREL decisions;
    • Sets out minimum conditions to authorize certain types of cooperative networks to use eligible liabilities of associated entities other than the resolution entity to comply with external MREL and minimum conditions to waive internal MREL of legal entities that are part of the cooperative network;
    • Expands on how liabilities can be considered eligible through contractual recognition; and
    • Establishes transitional periods up to the 2024 deadline for implementation of the Banking Package’s revised MREL standards.
    View the SRB's revised MREL policy.
    View details of BRRD 2.
    View details of CRR 2 and CRD V.
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