MREL and Marginal rate of tax relief: Difference between pages

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''Bank resolution and recovery''
The rate of tax at which a taxpayer would effectively save tax on the additional tax relieved expenditure if the total tax relieved expenditure increased by a small amount.


Minimum Requirement for own funds and Eligible Liabilities.
For example the marginal rate of tax relief on debt servicing costs, assuming a small increase in the total amount of debt finance.




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. 
== See also ==
* [[Marginal rate of tax]]
* [[Marginal relief]]


 
[[Category:Accounting,_tax_and_regulation]]
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]]
 
[[Category:Compliance_and_audit]]
[[Category:Risk_frameworks]]

Revision as of 15:21, 11 May 2016

The rate of tax at which a taxpayer would effectively save tax on the additional tax relieved expenditure if the total tax relieved expenditure increased by a small amount.

For example the marginal rate of tax relief on debt servicing costs, assuming a small increase in the total amount of debt finance.


See also

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