BoE sets final rules for bank loss-absorbency
Central bank issues final rules for bail-inable debt
The Bank of England set out its final policy for banks' loss absorbency today (November 8), giving firms more time to adjust to the new rules.
The so-called "minimum requirement for own funds and eligible liabilities" (MREL) specifies the amount of capital and bail-inable debt banks must hold – debt that can be converted to equity during a resolution process to recapitalise the bank.
Since a consultation, the BoE has extended the amount of time banks have to meet the rules by two years, giving
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