MREL

Bank resolution and recovery

Minimum Requirement for own funds and Eligible Liabilities.

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

MREL was originally due to be applied to EU banks and investment firms from 2016, with a review by the EBA by the end of 2016, and with a transitional period of up to 4 years.

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
• PLAC
• Recapitalisation amount
• Recovery
• Resolution
• SLAC
• Total Loss Absorbing Capacity