Interim and end-state minimum requirements for own funds and eligible liabilities (MRELs)

Overview

For resolution plans to be feasible and credible, UK firms are required to maintain sufficient resources that can absorb losses and provide for recapitalisation in resolution. To achieve this, the Bank of England, as the UK’s resolution authority, requires all banks, building societies and certain investment firms to maintain a minimum requirement for own funds and eligible liabilities (MREL).

This publication contains the 2025 external MRELs for all firms with a resolution entity incorporated in the UK for which an MREL above minimum capital requirements has been communicated. 

External minimum requirements for own funds and eligible liabilities (MRELs) – 2025

What is MREL? 

The firms in this publication have resolution strategies which involve bail-in or transfer, and so must maintain sufficient equity and debt resources that can absorb losses and provide for recapitalisation in resolution.

MREL is the minimum amount of equity and subordinated debt a firm must maintain to support an effective resolution. This is separate to the capital requirements set by the PRA.

For debt or equity to count to MREL, it must meet specific conditions. These conditions ensure we could depend on that equity and debt to support a resolution.

MREL ensures that investors and shareholders – and not the taxpayer – absorb losses when a firm fails. We set MREL to reflect how we would expect to resolve a firm if they failed. The biggest and/or most complex firms have the highest MRELs – reflecting that they would be more disruptive if they failed in a disorderly way.

The Bank of England has published a Statement of Policy setting out its approach to setting MREL.