MREL: Difference between revisions

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:

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+''Bank resolution and recovery''
 Minimum Requirement for own funds and Eligible Liabilities.
-''Bank [[resolution]] and [[recovery]].''
-The term used in draft [[EU]] legislation for loss absorbing capital ([[LAC]]) but seen in relation to total liabilities rather than risk weighted assets (RWAs) as [[PLAC]] and [[SLAC]] (UK) and [[GCLAC]] or GLAC ([[FSB]]). [EU definitions likely to be subject to change.]
+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.
+==See also==
+*[[Bailin]]
+*[[Capital adequacy]]
+*[[Eligible liabilities]]
+*[[Gone concern]]
+*[[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]]
 [[Category:Compliance_and_audit]]
 [[Category:Risk_frameworks]]