The SRB and the European Central Bank (ECB) have reached an “in principle” agreement on the margin for redeeming eligible liabilities under Article 78a(1)(b) of Regulation (EU) No 575/2013 (CRR). The new “in principle” agreement is applicable to authorisations granted as of 1 January 2023, including General Prior Permission (GPP) renewals.

 The margin is set by the resolution authority in agreement with the relevant competent authority.

The SRB has reached an “in principle” agreement with the ECB on the margin that institutions will have to comply with in order to be authorised to redeem eligible liabilities. The margin will be set at the lower value of either the requested GPP predetermined amount or the institution’s Pillar 2 Guidance. Nonetheless, a different margin may be set depending on the circumstances of the case. This applies for institutions under the supervision of the ECB.