The EBA publishes its second MREL impact assessment Report
This report assesses how the Minimum Requirement for own funds and Eligible Liabilities (MREL) has influenced the EU banking sector between 2022 and 2024. The document examines the regulatory impact on financial markets, bank profitability, and the evolution of funding structures following the full implementation of BRRD II. It highlights that while most institutions met their final targets by the 2024 deadline, smaller banks still face structural hurdles in accessing wholesale funding markets. Data indicates a significant shift toward senior non-preferred (SNP) debt as a primary tool for meeting subordination requirements. Ultimately, the report concludes that while compliance costs are higher for retail-oriented firms, MREL has successfully strengthened loss-absorbing capacities without destabilizing bank business models.