Single Resolution Board publishes Q3.2020 MREL dashboard

The Single Resolution Board (SRB) has today published its minimum requirement for own funds and eligible liabilities (MREL) dashboard covering the reporting period Q3.2020.

Key findings:

• The average BRRD1 MREL target, in percentage of the total risk exposure amount (TREA), rose by 0.6% from June  to September, to 28.6% TREA; the increase was mostly driven by the growth in total liabilities and own funds (TLOF).
• After recording an increase in Q2.2020, the average MREL shortfall reduced to 1.9% TREA in Q3.2020, as the increase in MREL eligible resources offset the growth of MREL targets.
• In Q3.2020, MREL issuances amounted to EUR 50.9 bn, a reduction of 42% (EUR 37.3 bn) in comparison to Q2.2020. Beyond seasonal effects, the availability of central bank funding was among the factors responsible for the pronounced reduction.
• Cost of debt stabilised in Q3.2020 and approached pre-pandemic levels in January 2021.