The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) specifying the methodology to be used by resolution authorities to estimate the Pillar 2 (P2R) and combined buffer requirements (CBR) at resolution group level for the purpose of setting the minimum requirement for own funds and eligible liabilities requirement (MREL).
These standards are part of the
EBA's major programme of work to implement the BRRD and address the
problem of too-big-to-fail banks.
The estimation of P2R and CBR is necessary for setting MREL when the
resolution group perimeter differs significantly from the prudential
perimeter at which own fund requirements have been set by the competent
authority.
The final draft RTS further specify a straightforward and
proportionate methodology for estimating own fund and combined buffer
requirements. They provide a framework for a dialogue between resolution
groups, competent authorities and resolution authorities aiming to
improve the accuracy of the input for MREL setting.
Legal basis
These final draft RTS have been developed according to Article 45c4 of the Bank Recovery and Resolution Directive (BRRD).
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