MREL in European banks: Requirement and shortfall under BRRD II
Under BRRD 2, European banks’ MREL deficit is €112bn (63% attributable to O-SIIs and non-systemic banks) and €188bn lower than 2018 results, mostly explained by issuances of €194bn during 2018–2019. Erosion of profitability is now critical, with interest expense increasing 2.3-3.2%. Basel IV significantly increase needs.
Regulatory authorities’ work programmes for 2019. Last steps in the negociation CRD V. CRD V negotiation: Resolution issues. Contingency measures for a no-deal Brexit. Habemus a Macroprudential Authority in Spain. Trends in digital regulation.
UK’s MREL proposal: alignment with TLAC in one ratio
On 11 December 2015, the Bank of England published its approach on setting the MREL for all UK banks, building societies and certain investment firms. The consultation is open for comments until 11 March 2016. This analysis will provide a summary of the proposal, with a focus on an important feature of the document: the fi…
Financial Regulation Outlook. Special Edition: January 2016
This month we focus on: China’s G20 presidency, from Basel III to Basel IV, sovereign risk regulation, challenges in resolution, shadow banking , micro- and macro-prudential supervision, ethics, culture & governance, digital regulation, regulatory impact analysis and european regulatory priorities for 2016.