BRRD 2 could crush MREL volumes in the Nordics

By David Freitas
29 Jul 2020

Subordinated bond issuance could decline dramatically among Nordic banks following implementation the EU’s new bank recovery and resolution directive (BRRD 2), Fitch said this week.

EU member states have until the end of the year to adopt BRRD 2, which updates the way in which the minimum requirements for own funds and eligible liabilities (MREL) are calculated for banks. 

Scandinavian countries have tended to favour very strict MREL standards, forcing domestic financial ...

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