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BoE sets final rules for bank loss-absorbency

Central bank issues final rules for bail-inable debt

Bankruptcy
New MREL rules aim to avoid taxpayer liability for bailouts

The Bank of England set out its final policy for banks' loss absorbency today (November 8), giving firms more time to adjust to the new rules.

The so-called "minimum requirement for own funds and eligible liabilities" (MREL) specifies the amount of capital and bail-inable debt banks must hold – debt that can be converted to equity during a resolution process to recapitalise the bank.

Since a consultation, the BoE has extended the amount of time banks have to meet the rules by two years, giving

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