Thursday, 28 April 2022| Maria DIAZ OLIVER
“The latest dashboard shows that, on the whole, banks continue to make progress in building up their levels of MREL, which is funding that acts as a shock absorber in a time of crisis,” said SRB Chair Elke König.
- In percentage of the total risk exposure amount (TREA), the average MREL final target, including the combined buffer requirement (CBR) for resolution entities, to be respected by 1 January 2024, stood at 26.2% TREA, growing marginally from Q3.2021.
- The average MREL shortfall to the final 2024 targets including the CBR reached 0.45% TREA (or EUR 32.6 bn) for resolution entities, continuing the decreasing trend observed in the previous quarter, yet at a slower pace.
- For non-resolution entities, the average MREL shortfall (including the CBR) against the final target halved with respect to Q3.2021 and amounted to 1.06% TREA (or EUR 22 bn).
- As concerns MREL intermediate 2022 targets (including CBR), almost all banks resulted compliant. The very few ones in shortfall are closely monitored.
- Banks’ issuance increased by 42.1% over the quarter and amounted to EUR 60.9 bn.
- MREL funding costs deteriorated in the first quarter, in light of rising geopolitical risks and elevated energy and oil prices, as well as inflationary pressures.
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