ECB warns of ‘significant heterogeneity’ in MREL market

By Tyler Davies
21 Nov 2019

The European Central Bank has warned that small banks are falling behind their larger peers as they look to build up buffers for the minimum requirements for own funds and eligible liabilities (MREL), despite operating in advantageous market conditions this year.

In a Financial Stability Review published this week, the ECB noted that there had been a trend towards “strong issuance” of MREL-eligible securities in the capital markets recently.

The latest estimates from the Single Resolution Board suggest that issuance of MREL debt has reached €187bn, about three-quarters of ...

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