Financial Supervisory Authority of Norway rolls out simplified MREL requirements to seven additional mid-sized banks

The Financial Supervisory Authority of Norway published a conference presentation outlining how it is extending the minimum requirement for own funds and eligible liabilities (MREL) to more small and medium-sized banks from 2025, using a simplified requirement set and a crisis-handling approach centred on transferring business rather than relying solely on internal recapitalisation. The presentation recalls the authority’s 2024 position that additional banks should be brought into scope where guaranteed deposits exceed 25% of the equity of the deposit guarantee fund, or where non-guaranteed deposits exceed NOK 5bn, with implementation to be phased in from 2025. The initial rollout is described as cautious, with entry thresholds “roughly doubled” and seven banks now subject to simplified requirements: Storebrand Bank, OBOS-banken, Landkreditt Bank, BN Bank, Sparebank 1 Helgeland, Sparebank 1 Ringerike Hadeland and Sparebanken Øst. For these banks, the stated MREL percentage is in the 19–22 range, with an “effective MREL” in the 29–32 range, fewer resolvability expectations than under the European Banking Authority’s resolvability guidelines, and quarterly reporting on MREL compliance rather than full crisis reporting. No further banks are expected to be added before 2028 unless there are material structural changes, with a reassessment planned in 2028 taking account of experience gained over the next three years and CMDI and other EU developments. The authority also signalled it may consider whether some banks currently subject to full requirements could instead be moved to simplified requirements.