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Resolution Authorities are required to report to the European Banking Authority (EBA) the minimum requirement that has been set for each institution in their respective jurisdiction according to common procedures and using common templates.
The common templates proposed by the EBA cover, among other things, the overall amount of minimum requirements for own funds and eligible liabilities (MREL) required from an institution, as well as each of the components of the MREL decision as foreseen in the Regulatory Technical Standard (RTS) on MREL. In addition, Resolution Authorities are required to provide an explanation on the adjustments made to the default MREL amount. This will facilitate the EBA in monitoring the consistency in the application of the MREL framework and help assess any divergences in the levels of MREL set for comparable institutions across Member States.
The Implementing Technical Standards (ITS) also provide for simplified reporting for certain categories of institutions for which liquidation, rather than resolution, will be the preferred strategy. In those cases, the MREL will only be made of a loss absorption amount.
These ITS only cover the reporting of MREL requirements from Resolution Authorities to the EBA. Reporting by institutions to Resolution or Competent Authorities is outside of the scope of this consultation.
Comments to this consultation can be sent to the EBA by 21 November 2016. A public hearing will then take place at the EBA premises on 14 November 2016 from 14:30 to 15:30 UK time.
Consultation Paper on ITS on MREL
Annex to the Consultation Paper on ITS on MREL reporting by Resolution Authorities