Resolution authorities have been given the task of setting, for each institution, the minimum requirement for own funds and eligible liabilities (‘MREL’) in accordance with the requirements and the procedures laid down in Article 45 of Directive 2014/59/EU as further specified by Commission Delegated Regulation (EU) 2016/1450.

Resolution authorities are required under Article 45(16) of Directive 2014/59/EU to inform the European Banking Authority (EBA), in coordination with competent authorities, of the requirements they have set. Uniform formats, templates and definitions for the identification and transmission of that information to the EBA should be designed in such a way that they facilitate the monitoring by the EBA of MREL decisions and ensure a meaningful assessment of convergence in approach across the Union.

In respect of groups which are subject to a consolidated MREL, it is necessary to clarify which resolution authority should transmit to the EBA the information on, first, the MREL determined for the parent undertaking concerned, and second, the MREL applied to the subsidiaries, whether on the basis of a joint decision reached between the group-level resolution authority and the resolution authority responsible for the subsidiary on an individual basis, or of a decision taken by the resolution authority of the subsidiary in the absence of a joint decision. In order to ensure that the EBA is provided with the necessary information as regards both the parent undertaking and the subsidiaries, the relevant group-level resolution authority should be required to inform the EBA, in coordination with the consolidating supervisor, of both the MREL determined on an individual and the MREL determined on a consolidated basis for the parent undertaking concerned, and the resolution authorities responsible for a group's subsidiaries, in coordination with competent authorities, should be required to inform the EBA of the MREL that has been set for each institution under their jurisdiction.

In order to promote convergence of practices regarding MREL decisions and to strengthen the monitoring role of the EBA, uniform reporting periods and submission dates for the transmission of information by the resolution authorities to the EBA should be established.

This Regulation is based on the draft implementing technical standards submitted by the EBA to the Commission.

The EBA has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits, and requested the opinion of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council,