Banks need an authorisation under Articles 77 and 78a of Regulation (EU) 575/2013 (CRR) to redeem eligible liabilities, as of 27 June 2019. Article 78a(3) of the CRR provides for the development of regulatory technical standards (RTS) to specify certain elements of that authorisation.
To date, pending the RTS, the SRB applied a provisional procedure  to assess and authorise banks’ applications, as clarified by the SRB Communication on SRB Permission Regime on Reduction of Eligible Liabilities published on 18 December 2020 and the SRB Communication on Application of RTS Provisions on Prior Permission for Reducing Eligible Liabilities as of 1 January 2022 published on 16 September 2021.
As explained there, 1 January 2022 is the deadline for institutions to comply with the intermediate MREL targets set under Regulation (EU) No 806/2014 (SRMR). In order to clarify the permission regime to be applied as of 1 January 2022, the SRB closely monitored the process for the adoption of the RTS by the European Banking Authority (EBA), the final drafts of which were published on 26 May 2021. 
The European Commission will finalise the draft RTS by adopting them in the form of a Delegated Regulation and notifying them to the Parliament and Council (in the absence of whose objection, the Delegated Regulation will enter into force). For procedural reasons, this will most likely not be achieved by January 2022.
To contribute to a smooth transition to the framework in the upcoming Delegated Regulation, and to limit the need for banks to re-submit a second authorisation application for General Prior Permissions within the same calendar year (i.e. once the Delegated Regulation enters into force), the SRB will amend its provisional policy in line with Section 2 - Subsection 2 – “Permission for reducing eligible liabilities instruments” of the draft RTS for all permissions effective as of 1 January 2022.
This means that applications for permission for redemptions of eligible liabilities should be compliant with the requirements in the RTS. Exceptionally, banks can file their applications until the end of September 2021, to allow them to familiarise themselves with the details.
The draft RTS includes some material changes on the conditions for authorisation compared to the SRB provisional policy, in particular regarding the authorised envelope for redemptions (the “pre-determined amount”) and the need to deduct it upfront from banks’ MREL resources.
Banks’ applications for authorisations from 1 January 2022 should be based on the list of information requirements as referred to in Articles 32(d) and (e) of the draft RTS, linked below for convenience . An additional communication on the new regime will be published in early September. Banks are encouraged to contact SRB in case of any additional questions.
 As amended by Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012 (OJ L 150, 7.6.2019)
 Final Report on the Draft Regulatory Technical Standards on own funds and eligible liabilities amending Delegated Regulation (EU) No 241/2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions.