Danish FSA loosens MREL for banks, cuts non-pref needs in half

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By David Freitas
04 May 2020

The Danish Financial Services Authority is softening its application of the minimum requirements for own funds and eligible liabilities (MREL) amid Covid-19, meaning the country’s largest banks could end up issuing half as much senior debt this year as might have been expected.

The Danish FSA said at the end of last week that it was introducing an upper limit on the MREL subordination requirement for systemically important financial institutions (SIFIs).

SIFIs had previously been required to meet all of their MREL targets with subordinated debt, which includes non-preferred senior bonds.


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