News release
Today the Bank of England published a Discussion Paper (DP) that is the first part of its review of the Bank’s approach to setting a minimum requirement for own funds and eligible liabilities (MREL).
The DP opens a broad dialogue with stakeholders, including the UK’s financial services industry, around the lessons which have been learnt for MREL policy since the publication of the Bank’s MREL Statement of Policy in 2016. Given the experience of mid-tier banks (as defined in the DP) of issuing MREL-eligible instruments, the focus of the DP is on these banks.
To enable the Bank to engage with interested parties on the issues set out in the DP and to complete its review of the MREL framework in 2021 in light of that engagement, the Bank has announced changes to the MREL and resolvability deadlines for mid-tier banks. The Bank has extended the deadline for mid-tier banks to comply with their end-state MRELs to 1 January 2023, unless they are already subject to a later deadline. Also, the deadline for mid-tier banks to implement five Statements of Policy related to the Resolvability Assessment Framework (RAF) has been extended from 1 January 2022 to 1 January 2023.