MREL: Difference between revisions
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imported>Doug Williamson (Expand. Sources: linked pages & BoE http://www.bankofengland.co.uk/financialstability/Documents/resolution/mrelconsultation2015.pdf) |
imported>Doug Williamson (Layout.) |
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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. | 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. | ||
Revision as of 23:23, 21 November 2016
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.
