The European Banking Authority (EBA) today published its Q4 2023 quarterly dashboard on minimum requirement for own funds and eligible liabilities (MREL), which discloses aggregated statistical information for 333 EU/EEA banks earmarked for resolution. All banks are meeting their MREL requirements in line with the Bank Recovery and Resolution (BRRD) deadline of 1 January 2024, except for 3 banks that reported technical shortfalls against this deadline. 23 banks have been granted a deadline extension. The amount of instruments coming to maturity over the next year for the sample reached EUR 207bn.
- As of 31 December 2024, 307 banks out of a sample of 333 were meeting their MREL target.
- 3 banks reported a technical shortfall of EUR 226mn or 0.6% of their combined risk weighted assets (RWA), 0.07% of the total RWA of the sample – the shortfalls are understood to be resolved since then.
- 23 banks have been granted a transition period beyond 1 January 2024. Their combined outstanding shortfall reached EUR8.0bn or 1.6% of their combined RWAs or 0.1% of the total RWAs in of the sample.
- Banks in the sample reported EUR 207bn of MREL instruments becoming ineligible by the end of 2024 for maturity reasons. Those represent around 18.1% of MREL eligible instruments other than own funds.
- The number of banks earmarked for resolution has increased over the past year with 352 external MREL decisions received by the EBA in force as of 1 May 2024, against 309 as of 1 May 2023. This increase is essentially driven by small banks moving from liquidation to resolution.
- Transfer strategies continue to be the preferred option in terms of number of decisions (55%), while bail-in is the favoured option in terms of RWAs covered (94%).
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