Small banks pin hopes on BoE reducing the scope of MREL

By Tyler Davies
06 Aug 2020

Smaller UK lenders are hoping the Bank of England will limit the scope of the minimum requirements for own funds and eligible liabilities (MREL) this year, relieving them of the potentially challenging task of raising new bail-inable debt in the capital markets.

At the moment, any UK bank with a balance sheet worth more than £15bn ($19.75bn) is likely to be subject to a bail-in requirement for MREL. 

But the Bank of England has been carrying out a review of the way in which it calibrates MREL ...

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