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Home > Prudential Regulation Authority > The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions – PS30/16
 

The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions – PS30/16

08 November 2016

​Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback on responses to Consultation Paper (CP) 44/15 ‘The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions’ and sets out the final Supervisory Statement (SS) 16/16 on the relationship between MREL and buffers, and MREL and Threshold Conditions.

This PS is relevant to all PRA-regulated banks, building societies and PRA-designated investment firms (firms). Alongside this PS, the Bank of England (the Bank) has published a statement of policy on its approach to setting MREL in line with relevant legislation. Readers should consider the PRA’s PS in light of the Bank’s statement of policy and vice versa.

Feedback on consultation responses

The PRA received nine responses to CP44/15. Overall, the PRA does not consider that the responses require significant changes to its proposals. The PRA has made two amendments to the draft SS to provide further clarity to firms. The amendments concern the entry into force of the proposed policies and the relationship between the MREL buffer policy and restrictions on distributions. Chapter 2 explains these changes and provides several further minor clarifications in light of feedback received.

Policy statement

The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions – PS30/16

Appendix

The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions – SS16/16

 

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