MREL: Difference between revisions
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imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Expand. Sources: linked pages & BoE http://www.bankofengland.co.uk/financialstability/Documents/resolution/mrelconsultation2015.pdf) |
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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 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. | |||
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*[[Loss absorbing capacity]] | *[[Loss absorbing capacity]] | ||
*[[Loss absorption amount]] | |||
*[[Own funds]] | *[[Own funds]] | ||
*[[Recapitalisation amount]] | |||
*[[Resolution]] | |||
*[[Total Loss Absorbing Capacity]] | *[[Total Loss Absorbing Capacity]] | ||
Revision as of 14:21, 10 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.
