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 [[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]]
+*[[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]]
-*[[PLAC]]
-*[[SLAC]]
-*[[Gone concern]]
-*[[Bailin]]
 [[Category:Compliance_and_audit]]
 [[Category:Risk_frameworks]]