Cost of bank bail-in rules lower than expected – EBA
MREL pricing manageable for most banks, though troubled firms may struggle to meet targets
The European Banking Authority believes banks will be able to meet their minimum requirement for debt that can be bailed in during a resolution – known as eligible liabilities (MREL) – without significant increases in overall funding costs.
The rise in inflation and interest rates in 2022 has not significantly driven up the cost of complying with the MREL rules, according to an EBA report
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