On 13 December 2023, the European Commission published Commission Delegated Regulation (EU) of 13.12.2023 amending Delegated Regulation (EU) 2015/63 as regards the calculation of eligible liabilities and the transitional regime.

The Commission Delegated Regulation:

  • Sets out amendments necessary to adjust Delegated Regulation (No) 2015/63 to the definition of “eligible liabilities” and to the calculation of the minimum requirement for own funds and eligible liabilities (MREL) as provided for in the Bank Recovery and Resolution Directive (BRRD) as amended by Directive (EU) 2019/879, as well as extending by one year the possibility by smaller institutions which contribute to national resolution funds to contribute a lump-sum until 31 December 2024 – end of the period to reach the target level of national financing arrangements.
  • Incorporates the definition of “eligible liabilities” in Article 2(1), point (71a), of the BRRD.
  • Updates the reference to the specific cases in which resolution authorities can waive the calculation of the MREL requirement at individual level under the BRRD.
  • Extends by one year the period during which smaller institutions can contribute with a lump-sum to national resolution funds, until the end of the initial period to reach the target level for national resolution funds – 31 December 2024.
  • Adds two paragraphs to Article 20 of Delegated Regulation (EU) 2015/63, establishing transitional provisions for 2024 allowing resolution authorities to notify the institutions of their decisions determining the annual contribution by 31 May 2024, and institutions to provide information to resolution authorities by 29 February 2024.
  • Adjusts the calculation of the indicator “Own funds and eligible liabilities held by the institution in excess of MREL” in Annex I, STEP I, as necessary to take account of the above-mentioned amendments and the calculation of MREL pursuant to Article 45(1) of the BRRD as amended.

The Commission Delegated Regulation enters into force on the day following its publication in the Official Journal of the EU (OJ). It applies from the day following its publication in the OJ except for certain provisions of Article 1 which apply retroactively as of 1 December 2023.