The EACB welcomes the opportunity to comment on the Single Resolution Board (SRB) draft policy applying Minimum Requirements for Own Funds and Eligible Liabilities (MREL) following the finalisation of the Banking Package.
We believe that such transparent exercise if of the utmost importance to bring clarity in how the new provisions brought into being by CRR2, BRRD2, SRMR2 will affect the practical daily work of resolution authorities and institutions.
Furthermore, we welcome the fact that the SRB provided a dedicated section to MREL in cooperative groups/networks, it is indeed essential to cater for specific legal and institutional arrangements when applying resolution requirements.
Nevertheless, we believe that the policy needs a number of adjustments and refinements in order to adequately take into account the scope set by level 1 legislation, proportionate solutions (e.g. for setting the recapitalisation amount, with regard to the request of independent legal opinions, identifying the scope of non-resolution entities for internal MREL etc.), and the concrete manner in which resolution requirements are declined within cooperative groups.
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