Single Resolution Board publishes MREL dashboard Q2.2024

The SRB publishes today its MREL dashboard for Q2.2024, which shows that banks continue to maintain their targets. MREL, or the minimum requirement for own funds and eligible liabilities, is one of the key tools in resolvability, ensuring that banks maintain a minimum amount of resources to support an effective resolution, based on targets set by the SRB.

The MREL dashboard tracks the evolution of these 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 the quarter. In addition, it highlights recent developments in the cost of funding and provides an overview of gross issuances of MREL-eligible instruments.

Key findings:

• For resolution entities, the average MREL final target, including the Combined Buffer Requirement (CBR), was equal to 28% of the Total Risk Exposure Amount (TREA), remaining stable compared to the previous quarter.

• In aggregate terms, the total MREL shortfall (including the CBR) against final targets of resolution entities decreased to EUR 3.7 bn (corresponding to 0.05% TREA). All entities which had to comply with their final MREL targets as of 1 January 2024 continue to meet their requirements. The MREL shortfall is attributed to seven banks with transitional periods to meet their final targets beyond 1 January 2024.

• Banks under the SRB’s remit overall issued EUR 52.3 bn of MREL-eligible instruments during the quarter under review.

MREL dashboard Q2.2024

PDF | 1.77 MB | Publishing date: 07/11/2024 | Decision date: 07/11/2024

The minimum requirement for own funds and eligible liabilities (MREL) dashboards are based on bank data reported to the Single Resolution Board (SRB) and cover entities under the SRB’s remit. The first section of the dashboard focuses on the evolution of MREL targets and shortfalls for resolution entities (external MREL) and non-resolution entities (internal MREL) as well as the level and the composition of MREL resources of resolution entities in Q2.2024. The second section highlights recent developments in the cost of funding and provides an overview of the gross issuances of MREL-eligible instruments in Q2.2024