European bail-in buffers may stretch market-making capacity

New Basel capital exemptions could be too small if all EU banks have to issue bail-in bonds

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Flexible friend? It is unclear how EU lawmakers will take account of MREL

Recently finalised Basel rules on bank holdings of bail-in debt issued by other banks provide leeway for market-making in instruments issued by global systemically important banks (G-Sibs), but they could have disproportionate ramifications in Europe if smaller banks also have to build bail-in buffers, capital markets bankers are warning.

"What will be interesting is how much non-G-Sib banks have to issue under MREL (minimum requirement for own funds and eligible liabilities) in Europe, and does

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