EU moves to resolve bank bail-in debate

Council urges EC to clarify implementation of MREL and TLAC

European Commission
The European Commission: did not specify an ex ante floor

The Council of the European Union has sought to take the political heat out of future bank resolutions, by calling for greater clarity on the amount of debt that a bank must put in the firing line to avoid a public bail-out.

In May, the European Commission published a key delegated act for the Bank Resolution and Recovery Directive (BRRD). This covered minimum requirements for eligible liabilities (MREL) that would be bailed in during a bank resolution. But the EC chose not to specify an ex ante

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