Regulatory Alerts2024-12-17
Added · Updated
Circular to Credit Institutions with the Minimum Requirement of Own Funds and Eligible Liabilities equal to the Loss Absorption Amount
With effect from 15 November 2024, all current Minimum Requirement for Own Funds and Eligible Liabilities (MREL) Decisions requiring credit institutions to meet MREL equal to the Loss Absorption Amount (LAA) are repealed. This change results from the Recovery and Resolution (Amendment No. 2) Regulations, 2024, which exclude liquidation entities from the scope of MREL. An exception remains where the Resolution Committee determines that MREL must exceed the LAA to address financial stability or contagion risks.
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