ECB casts doubt on bank MREL targets

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By Tyler Davies
27 May 2020

The European Central Bank said this week that Covid-19 could hamper some banks from meeting their targets for the minimum requirements for own funds and eligible liabilities (MREL), given the likelihood of credit rating downgrades and dislocation in the funding markets.

As part of its semi-annual financial stability review, published this week, the ECB drew attention to recent debt issuance trends among euro area banks.

It noted that the supply of new bank bonds had risen again recently, after dropping close to zero upon the arrival of the ...

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