Single Resolution Board publishes MREL dashboard Q4.2021

Today, the Single Resolution Board (SRB) has published its minimum requirement for own funds and eligible liabilities (MREL) dashboard covering the reporting period Q4.2021.

“The latest dashboard shows that, on the whole, banks continue to make progress in building up their levels of MREL, which is funding that acts as a shock absorber in a time of crisis,” said SRB Chair Elke König.

Key findings:

• In percentage of the total risk exposure amount (TREA), the average MREL final target, including the combined buffer requirement (CBR) for resolution entities, to be respected by 1 January 2024, stood at 26.2% TREA, growing marginally from Q3.2021.
• The average MREL shortfall to the final 2024 targets including the CBR reached 0.45% TREA (or EUR 32.6 bn) for resolution entities, continuing the decreasing trend observed in the previous quarter, yet at a slower pace.
• For non-resolution entities, the average MREL shortfall (including the CBR) against the final target halved with respect to Q3.2021 and amounted to 1.06% TREA (or EUR 22 bn).
• As concerns MREL intermediate 2022 targets (including CBR), almost all banks resulted compliant. The very few ones in shortfall are closely monitored.
• Banks’ issuance increased by 42.1% over the quarter and amounted to EUR 60.9 bn.  
• MREL funding costs deteriorated in the first quarter, in light of rising geopolitical risks and elevated energy and oil prices, as well as inflationary pressures.