The EBA publishes amendments to disclosures and reporting on MREL and TLAC

• The amendments to disclosure and reporting of the minimum requirement for own funds and eligible liabilities (MREL) and the total loss absorbency requirement (TLAC) reflect changes to the prudential framework, such as the ‘daisy chain’ framework.
• The amendments will apply from June 2024.

The European Banking Authority (EBA) today published today its final draft Implementing Technical Standards (ITS) on amendments to disclosure and reporting of the minimum requirement for MREL and TLAC. These amendments reflect the new requirement to deduct investments in eligible liabilities instruments of entities belonging to the same resolution group, the so called ‘daisy chain’ framework, and other changes to the prudential framework. The amendments will apply for the reference date of June 2024.

The final ITS on disclosure and reporting of MREL and TLAC had to be adjusted in response to amendments to the Capital Requirements Regulation (CRR) as well as to clarify requirements in response to Single Rulebook Q&A process. In addition to the ‘daisy chain’ framework, changes cover information on the prior permission regime for buying back eligible liabilities instruments issued by the reporting entities and groups, and the breakdown by insolvency ranking.

The mapping between the disclosures and reporting requirements is published alongside the amending ITS and has been updated to reflect the amendment to both requirements.

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;

A final review of the ITS and its annexes will be done against the final   text of Regulation (EU) 2022/2036 amending the CRR (‘daisy chain’ framework) once it is published.