The Single Resolution Board (SRB) today launches a public consultation on a number of substantial changes to its policy on the Minimum Requirement for Own Funds and Eligible Liabilities (MREL). These changes bring the policy in line with the amendments introduced by the 2019 EU “Banking Package” to EU regulations and directives.

This document describes the proposals, provides the rationale and highlights several specific questions to which the SRB seeks responses. The SRB is eager to receive responses and suggestions from a full range of stakeholders.

The consultation is open until 12.00 Brussels time on 6 March 2020. The answers will support the SRB in preparing its final MREL Policy Statement, expected to be published by end April 2020.

The proposals cover the implementation of provisions related to, among others:

• MREL requirements for Global Systemically Important institutions (G‑SIIs);
• Changes to the calibration of MREL, including introducing MREL based on the leverage ratio;
• Changes to the quality of MREL;
• Dedicated rules for certain business models, such as cooperatives, and for resolution strategies, such as multiple point of entry (MPE);
• How these changes will be phased in.

MREL decisions implementing the new framework will be taken based on this policy in the 2020 resolution planning cycle by Q1 2021.

This public consultation is part of the SRB’s commitment to listening to the views of industry and other stakeholders and being transparent about its approaches and decisions.