MREL
Minimum Requirement for Own Funds and Eligible Liabilities
Definition
The EU requirement for banks to maintain sufficient instruments that can absorb losses and recapitalise the institution in the event of failure and resolution. MREL is set individually for each bank by the resolution authority based on its resolution strategy and ensures orderly resolution without public funds.
Regulatory Context
MREL is the EU's implementation of the TLAC concept, applied more broadly to all EU banks under the BRRD. Resolution authorities set external and internal MREL targets based on the institution's resolution plan and strategy.