On 22 July, the Bank of England published a Consultation Paper (CP) as part of its review of the UK’s framework for the Minimum Requirement for Own Funds and Eligible Liabilities (MREL).
The CP is the second stage of the MREL Review and sets out the Bank’s proposed changes to its MREL framework. It follows on from the first stage of the MREL Review, where the Bank issued a Discussion Paper (DP) in December 2020.
The CP will consider a number of issues relating to MREL, including resolution strategy thresholds, the calibration of MREL, instrument eligibility, and the application of MRELs within banking groups. The consultation remains open until 1 October 2021 and the bank intends on making the relevant policy changes by the end of 2021.
To view the CP, please click here.