EBA reports on TLAC-MREL Progress
In May 2019 the European Banking Authority (EBA) adopted new rules regarding the Minimum Requirement for own funds and Eligible Liabilities (MREL) and the Total Loss Absorbing Capacity (TLAC). These new tools are designed to help investors and regulators better understand the capacity of an entity to absorb losses, and know their position if the entity were to be liquidated.
This week EBA’s first monitoring report on TLAC-MREL instruments was published, assessing implementation to date and making 15 recommendations for improvements. The recommendations cover subordination, loss absorption, maturity and tax gross-up.
Find out more and read the report here.