BoE asks banks to allocate $154 billion to new MREL requirements
UK central bank introduces new internal capital requirement for large banks with subsidiaries
Large UK banks will need to rewrite the contracts underpinning $154 billion in debt over the next five years to meet the Bank of England’s new ‘internal’ minimum requirement for own funds and external liabilities (MREL).
Today (October 2), the BoE published new guidelines that set out how much internal MREL – which can be used to bail in investors in a crisis – must be allocated throughout the banking group.
“Resolution policy has come a long way since 2007,” says Jon Cunliffe, deputy governor
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