In accordance with the adopted resolution framework, the Fund is required to determine, and entities to maintain, the minimum requirement of own funds and eligible liabilities (MREL), the purpose of which is to ensure loss absorption and recapitalization capacity.
Below we provide a link to the document outlining the Fund’s current MREL methodology as of 2024.
In comparison to the previous MREL methodology, the Fund is in particular introducing the following changes:
- specification of the intended method of determining the MREL for banks operating in the form of a joint-stock company and cooperative banks that are not participants of IPS, for which the instrument of the sale of business has been indicated in the resolution plans as the preferred resolution instrument,
- specification of the intended method of determining the MREL for a Top-Tier Bank and a Fished Bank,
- indication of the Fund’s expectation to meet part of the MREL with debt instruments (other than CET1).
