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

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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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