EBA launches public consultation on amendments to the ITS on disclosures and reporting on MREL and TLAC

The European Banking Authority (EBA) launched today a public consultation on amendments to the draft Implementing Technical Standard (ITS) on disclosure and reporting of the minimum requirement for own funds and eligible liabilities (MREL) and the total loss absorbency requirement (TLAC). These amendments aim to reflect changes to the prudential framework that came or will soon come into force and provide clarifications on the information to be reported in the insolvency ranking templates. The consultation paper also includes an updated mapping between disclosure and reporting requirements. The consultation runs until 18 August 2023.

The ITS introduce amendments to (i) information on the requirement to deduct investments in eligible liabilities instruments of entities belonging to the same resolution group (‘daisy chain’ framework), (ii) information on the prior permission regime for buying back eligible liabilities instruments issued by the reporting entities and groups, and (iii) the breakdown by insolvency ranking.

As the amendments are limited and deemed to be of lower impact, the consultation period has been shortened.

The amendments are envisaged to apply for the reference date of June 2024.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 18 August 2023. All contributions received will be published following the end of the consultation, unless requested otherwise.

A public hearing will be organised in the form of a webinar on 21 July 2023 from 10:00 to 11:00 CET. The EBA invites interested stakeholders to register using this link by 19 July at 16:00 CET.

The dial-in details will be communicated in due course.

Legal basis and next steps

• These draft ITS have been developed in accordance with:Article 434a of CRR2 and Article 45i(6) of the revised Bank Recovery and Resolution Directive (BRRD2), which mandate the EBA to specify uniform disclosure formats, associated instructions, and in the case of MREL frequencies, implementing respectively the TLAC and MREL disclosure requirements;
• Articles 430(7) of CRR2 and Article 45i(5) of the BRRD2, which mandate the EBA to specify the uniform reporting templates, the related instructions and methodology, the frequency and dates of reporting, the definitions and the IT solutions for TLAC and MREL reporting.

The EBA expects to submit these draft ITS to the European Commission in August/September 2023.