MREL: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>John Grout
(To update for passage of 2014/59/EU)
(Mend link.)
 
(12 intermediate revisions by one other user not shown)
Line 1: Line 1:
''Bank resolution and recovery''
Minimum Requirement for own funds and Eligible Liabilities.
Minimum Requirement for own funds and Eligible Liabilities.


''Bank [[resolution]] and [[recovery]].''


The term used in [[EU]] legislation (2014/59/EU[http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0059] for loss absorbing capital ([[LAC]]) of certain financial institutions.   
The term used in [[EU]] legislation (2014/59/EU)[http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0059] for the loss absorbing capital (LAC) of certain financial institutions.   
 
 
MREL comprises the total of a bank's:
*Loss absorption amount; and
*Recapitalisation amount.


MREL is due to be applied to EU banks and investment firms from 1 January 2016 but with a review by the [[EBA]] by the end of 2016 - and with a transitional period of up to 4 years.


==See also==
*[[Bailin]]
*[[Capital adequacy]]
*[[Capital adequacy]]
 
*[[Eligible liabilities]]
*[[Gone concern]]
*[[Loss absorbing capacity]]
*[[Loss absorbing capacity]]
 
*[[Loss absorption amount]]
*[[Own funds]]
*[[Primary Loss Absorbing Capital]]  (PLAC)
*[[Recapitalisation amount]]
* [[Recovery]]
*[[Resolution]]
*[[Secondary Loss Absorbing Capital]]  (SLAC)
*[[Total Loss Absorbing Capacity]]
*[[Total Loss Absorbing Capacity]]
*[[PLAC]]
*[[SLAC]]
*[[Gone concern]]
*[[Bailin]]


[[Category:Compliance_and_audit]]
[[Category:Compliance_and_audit]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]

Latest revision as of 10:02, 12 September 2024

Bank resolution and recovery

Minimum Requirement for own funds and Eligible Liabilities.


The term used in EU legislation (2014/59/EU)[1] for the loss absorbing capital (LAC) of certain financial institutions.


MREL comprises the total of a bank's:

  • Loss absorption amount; and
  • Recapitalisation amount.


See also