The European Banking Authority (EBA) has published an interim
report on the minimum requirement for own funds and eligible
liabilities (MREL). Under the Bank Recovery and Resolution
Directive (2014/59/EU) (BRRD) the EBA is required to submit a
report to the European Commission on the implementation of MREL by
October 31, 2016. This report will assist the Commission in
its work on a legislative proposal on the harmonized application of
MREL as well as a legislative proposal to review MREL and implement
the total loss absorbing capacity standard in the EU.
The EBA's interim report is intended to provide input into
the Commission's deliberations ahead of the preparations of the
EBA's final report and contains a number of provisional
recommendations. Preliminary quantitative findings on the financing
capacity and needs of EU banking groups are also available in the
interim report, although these are subject to several
methodological caveats. In the absence of MREL
