EU banks face €178bn MREL shortfall

摘要

European banks need to fill a €178bn shortfall in debt that can absorb losses to meet new rules designed to make lenders more resilient and prevent the need for taxpayer bailouts. Europe's banking watchdog last week said 117 of the EU's biggest 222 banks, or more than half, have a shortfall in their minimum requirement for own funds and eligible liabilities, or MREL. The European Banking Authority said 65 of the 117 banks with funding needs may not need to issue completely new types of debt instruments, however, and could meet their needs by adjusting and rolling over existing debt that is similar but doesn't qualify as MREL.