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December 2021 resolution publications: MREL Review

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The Bank of England has today published a Policy Statement concluding the Bank’s review of its approach to setting a minimum requirement for own funds and eligible liabilities (MREL), accompanied by a revised MREL Statement of Policy.

These publications conclude the final stage of the Bank’s MREL Review and set out the Bank’s changes to its MREL framework. They follow on from the publication of a Consultation Paper in July 2021 and a Discussion Paper in December 2020. Responses to these publications, and the Bank’s subsequent engagement with respondents, have informed the Bank’s policy choices.

The Review has considered the resolution strategy thresholds, the calibration of MREL, instrument eligibility, and the application of MRELs within banking groups.

The Bank would like to thank all those who engaged throughout the Review.

The revised Statement of Policy will apply from 1 January 2022.

In addition, the Bank would like to hear ideas to support its work to improve depositor outcomes in the event of bank or building society insolvency (see related links).

Related links:

  1. Policy Statement
  2. MREL Statement of Policy
  3. Improving depositor outcomes in bank or building society insolvency
  4. Resolution webpages

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