On Nov. 27, EBA issued MREL dashboard covering Q1 and Q2 2024.
EBA issued Q1 and Q2 2024 minimum requirement for own funds and eligible liabilities (MREL) dashboard, with aggregated statistics for 339 banks earmarked for resolution.
For the first time, the MREL dashboard also includes the list of entities covered.
All banks meet MREL requirements in line with Bank Recovery and Resolution Directive (BRRD) deadline of Jan. 1, 2024, except for 21 banks reporting shortfalls.
Follows EBA Jul. 2024 published its MREL dashboard covering Q4 2023, see #218151.
Key Points
As at Jun. 30, 2024, 318 banks out of total 339 met MREL target, while 21 are still in their transition report a shortfall, down from 30 as at end 2023 on comparable sample.
Combined outstanding shortfall €16.1bn or 2.6% of combined risk-weighted assets.
Banks in the sample reported €220bn of MREL instruments that will become ineligible by the end of Jun. 2025 due to their residual maturity falling below one year.
These account for around 18.6% of MREL eligible instruments other than own funds.
Transfer strategies continue to be preferred option in terms of number of decisions (61%), while bail-in favored option in terms of risk-weighted assets covered (94%).
Reflects fact transfer strategies are favored for small banks, bail-in for larger ones.
Next Steps
More details on MREL roll over needs and the state of resolution planning will be included in the upcoming autumn 2024 EBA Risk Assessment Report.
