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 2026 external MRELs for all firms with a resolution entity incorporated in the UK for which a bail-in or transfer preferred resolution strategy has been set. 

External minimum requirements for own funds and eligible liabilities (MRELs) – 2026

What is MREL? 

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.