On 15 May 2023, the Single Resolution Board issued a press release stating that it was maintaining its policy on the calibration of the minimum requirement for own funds and eligible liabilities (MREL) with minimal changes this year. The press release adds that the only change concerns the scope of entities subject to internal MREL which was previously announced. The SRB reduces the size threshold for credit institutions considered as ‘Relevant Legal Entities’ from EUR 10bn to EUR 5bn, keeping the other thresholds unchanged, from now on.

The press release adds that:

• Given the Daisy Chain Regulation (Regulation 2022/2036) the SRB may also decide to set internal MREL for certain intermediate financial holding companies not subject to prudential requirements after a case-by-case assessment, where it is deemed instrumental to ensure a sound execution of the resolution strategy.
• As part of the SRB’s ongoing strategic review, it will launch a public consultation on MREL for the 2024 cycle and beyond in the second half of this year.
• The SRB has also published its MREL dashboard for Q4 2022. The MREL dashboard presents the evolution of MREL targets and shortfalls for resolution (external MREL) and non-resolution entities (internal MREL) as well as the level and composition of resources of resolution entities in that quarter. In addition, it highlights recent developments in the cost of funding and provides an overview of gross issuances of MREL-eligible instruments in Q4 2022.