Definition of MREL
Minimum requirement for own funds and eligible liabilities - required for 'too big to fail' banks in addition to capital ratios. This is effectively the European version of TLAC (total loss-absorbing capacity) for banks - and includes equity (common equity tier 1 capital), additional tier 1 capital and other bail-in bonds. MREL is required by the European Bank Recovery and Resolution Directive, designed to prevent the failure of systemically important banks (SIBs).
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