Implementacja wymogu MREL do sektora bankowego
Implementation of the MREL requirement in the banking sector

Author(s): Iwona Dorota Czechowska, Czesław Lipiński, Joanna Stawska, Joanna Stępińska, Wojciech Zatoń, Marcin Borys
Subject(s): Economy, Financial Markets
Published by: Wydawnictwo Uniwersytetu Łódzkiego
Keywords: MREL requirement; stock exchange banks; TLAC requirement; prudential requirements; CRR regulation; EU directives
Summary/Abstract: The monograph is a compendium of knowledge in the field of broadly understood finance, on the essence and mechanisms of the functioning of the banking sector and the problems associated with them. The subject of the analysis is the minimum requirement for own funds and eligible liabilities (MREL) introduced in the banking systems of EU countries in order to ensure the resilience of individual financial institutions to the negative effects of changes in the economic environment, by maintaining capital reserves at a level that allows for covering potential losses and recapitalization. The publication describes the issue of the justification for applying MREL requirements in practice. The scope of the publication covers the banking sector in Poland, in particular the group of banks listed on the WSE, as well as a comparison of MREL levels in the banking sector in Poland with levels in the banking sectors of other EU countries. The aim of the study is to estimate the needs related to fulfilling MREL and to present practical aspects of this process, including the type of instruments used, costs incurred and possible risk factors. The monograph sought answers to the research questions: What is the scale of the needs in terms of obtaining own funds and eligible liabilities of banks? What instruments are used to meet the MREL requirement? Is it possible to significantly increase the risk of financial stability threats if individual institutions invested in MREL instruments? The importance of the MREL problem is extremely important, especially in periods of crisis. In the study, the authors presented the essence of the MREL requirement and the characteristics of prudential requirements, described the principles of its calculation, presented trends and detailed phenomena in the scope of MREL, presented an analysis of the experience of other countries, as well as costs, risk factors and practical problems of implementing this requirement. In previous studies, attempts at an in-depth analysis of the requirement for own funds and eligible liabilities in the banking sector have rarely been made. The originality of this publication is the collection of all information on MREL and the presentation of this issue in the perspective of its implementation. This is one of the first publications to present such issues in such a synthetic and at the same time detailed way on the publishing market in Poland.

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