These standards will enable the European Banking Authority (EBA) to monitor the consistency of MREL implementation across the EU.
Resolution Authorities are required to report to the EBA the MREL that has been set for each institution in their respective jurisdiction according to common procedures and using common templates.
Under the common templates, resolution will report the overall amount of MREL required from an institution, as well as each of the components of the MREL decision as laid down in the Regulatory Technical Standard (RTS) on MREL. Where resolution Authorities depart, in compliance with the RTS on MREL, from a default component of the MREL methodology, they are required to provide an explanation on the adjustments made. 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 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.
Press release
ITS on MREL reporting by Resolution Authorities
Recovery, resolution and DGS
© EBA
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