Loss Absorbing Capacity in the Banking Union: TLAC Implementation and MREL Review

This note explains the objectives of and main differences between the Minimum Requirement for own funds and Eligible Liabilities (MREL) under the BRRD framework and the Total Loss Absorbing Capacity (TLAC) standard developed globally by the Financial Stability Board (FSB). It also summarises the issues arising from the need to implement the TLAC standard under EU law.

ESO: Key Source: European Banking Union http://www.europeansources.info/record/european-banking-union-2/

European Central Bank: Banking supervision: Banking union http://www.europeansources.info/record/banking-supervision/

Website: Financial Stability Board http://www.fsb.org/

EBA: Press Release, 19.07.16: EBA consults public on the minimum requirement for own funds and eligible liabilities (MREL) http://www.eba.europa.eu/-/eba-consults-public-on-the-minimum-requirement-for-own-funds-and-eligible-liabilities-mrel-

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