European rules on internal MREL are ‘not okay’, says UniCredit’s Mustier

By Tyler Davies
10 Oct 2019

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 ...

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