Europe's banks face reduced MREL impact

摘要

European lenders may have to borrow less than previously estimated to fulfil new regulatory requirements for loss-absorbing debt, the European Banking Authority said last week. The €186.1bn-€276.2bn range, released as part of the EBA's final report on minimum requirement for own funds and eligible liabilities (MREL), is much narrower than the €130bn-€790bn range the watchdog released in an interim report in July. MREL requires banks to hold sufficient liabilities that can be written down to avoid taxpayers carrying the burden of future bank failures.