Fewer banks to sell MREL debt – EBA
Lenders plan to attain more retail deposits and Tier 2 and AT1 instruments instead
A smaller share of European banks intend to issue bail-in debt today than in December 2018, according to an EU-wide survey.
Out of a sample of 62 banks, 45% expect to sell more senior non-preferred and senior holding company debt, down from 65% of a 53-bank sample at end-2018.
In contrast, more banks plan to grow their retail deposit piles – 40% compared with 35% in December. A larger share also plan to issue Tier 2 and Additional Tier 1 instruments, 25% up from 15%.
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