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 2023 external MRELs for all firms with a resolution entity incorporated in the UK for which an MREL above minimum capital requirements has been communicated. The Bank has updated the format of the disclosure to reflect the fact that as of 1 January 2023 most firms have reached their end-state MRELs and that, in future, firms which become newly subject to a preferred resolution strategy involving the use of stabilisation powers will be subject to the transition arrangements set out in the Bank’s revised Statement of Policy (SoP) on its approach to setting MREL. This year’s disclosure also reflects firm-specific judgements to adjust the MREL for firms with a partial transfer preferred resolution strategy, under paragraph 4.8 of the MREL SoP.