On 18 December 2020, the Single Resolution Board (SRB) updated its approach to the prior permission regime for early calling, redeeming, repaying or repurchasing of eligible liabilities’ instruments by Eurozone banks. From 28 December 2020, the statutory transition period begins under the Single Resolution Mechanism Regulation II (SRMR 2) and authorisation to perform early redemption of MREL-eligible liabilities will need to be in place as of 1 January 2022. This is in line with the European Banking Authority’s regulatory technical standards on procedural aspects of the permission regime, which are expected in 2021.The update also clarifies what will happen once MREL decisions under the SRMR 2 are communicated by national resolution authorities within the Eurozone, and provides an update on the treatment of general prior permissions currently in place.

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