On 16 May 2023, the European Banking Authority (EBA) issued a report on the holdings by EU banks of the minimum requirement for own funds and eligible liabilities (MREL) instruments issued by the most systemic European banks. As of 31 December 2021, the report shows that these holdings appear small and the direct spill over effects from a possible bail-in appear limited.
The report is issued in response to the mandate under Article 504a of the Capital Requirements Regulation II. The EBA is mandated to report to the European Commission the amounts and distribution of holdings of eligible liabilities instruments among institutions identified as global systemically important institutions or other systemically important institutions and on potential impediments to resolution and the risk of contagion in relation to those holdings.