The European Banking Authority published its Q4 2024 semi-annual Dashboard on the minimum requirement for own funds and eligible liabilities (MREL), providing aggregated statistics for 345 EU banks earmarked for resolution. The results indicate that banks generally meet MREL requirements set by resolution authorities in line with the Bank Recovery and Resolution Directive deadline, with shortfalls limited to a small number of institutions mainly in transition to future targets. As of 31 December 2024, most banks met MREL including the combined buffer requirement. The reported shortfall totalled EUR 2.3bn, equivalent to 2.1% of combined risk-weighted assets. Banks also reported EUR 242bn of MREL instruments expected to become ineligible by end-December 2025 because residual maturity will fall below one year, representing around 20% of MREL-eligible instruments other than own funds. Bail-in strategies dominated in terms of risk-weighted assets (94%), while decisions were split evenly between bail-in and transfer strategies (50% each), reflecting a greater use of transfer strategies for smaller banks. The dashboard reflects decisions in force as of 1 May 2025 and may differ from monitoring in the European Resolution Examination Programme, which is based on 2024 decisions only and may use different reference dates. Further information on MREL rollover needs is covered in the Spring and Autumn editions of the EBA Risk Assessment Report.

Original source View in tracker