Proposed changes to the MREL framework

Table 2 illustrates the major changes to the MREL framework, including the new minimum requirement (Pillar 1) for G-SIIs in the EU. In line with the proposal to amend the CRD-IV (new Article 104(b), Article 45e applies the concept of ‘guidance’ in the BRRD. It allows resolution authorities ‘to require institutions to meet higher levels of MREL while addressing in a more flexible manner any breaches of those levels, in particular by alleviating the automatic effects of such breaches in the form of limitations to the Maximum Distributable Amounts (MDAs)