MREL: Difference between revisions

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imported>Doug Williamson
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''Bank [[resolution]] and [[recovery]].''
''Bank resolution and recovery''


Minimum Requirement for own funds and Eligible Liabilities.
Minimum Requirement for own funds and Eligible Liabilities.


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. 


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.
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==
==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]]
*[[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 12:32, 25 June 2022

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