Circular NBB_2022_21 of the Resolution Board on the methodology and assessment criteria for applying the specific MREL requirement for top-tier institutions to non-top-tier institutions

The Resolution Board of the National Bank of Belgium establishes a three-step methodology to determine whether the specific MREL requirement for top-tier institutions must be applied to non-top-tier institutions within resolution groups having total assets of less than EUR 100 billion. The process first assesses whether the failure of the institution would likely pose a systemic risk, then evaluates the necessity of applying the top-tier requirement based on existing MREL levels and loss-absorption thresholds, and finally reviews proportionality criteria regarding deposit dominance, market access for eligible liabilities, and reliance on Tier 1 capital. This framework ensures that the specific MREL requirement is only imposed when necessary and proportionate to the institution's specific financing structure and risk profile.

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Circular

Brussels, 19 September 2022

Reference: NBB_2022_21

Your correspondent:
Grégory Nguyen
Tel. +32 2 221 55 17 gregory.nguyen@nbb.be

Circular of the Resolution Board of the National Bank of Belgium on the methodology and assessment criteria it uses to decide whether the specific MREL requirement for top-tier institutions should be applied to a non-top-tier institution

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Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works