European rules on internal MREL are ‘not okay’, says UniCredit’s Mustier
Jean Pierre Mustier, chief executive of UniCredit, said on Thursday that European banks were being put at a disadvantage by minimum requirements for own funds and eligible liabilities (MREL), as it overburdens subsidiaries of cross-border banking groups.
MREL requires banks to issue bail-inable bonds to external investors, ensuring they have sufficient resources to absorb losses if they run into financial trouble.
But the rules also govern how these loss-absorbing resources should be distributed across a banking organisation.The idea is that foreign subsidiaries should issue ...
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com