(1)

Resolution authorities have been given the task of setting minimum requirements for own funds and eligible liabilities (MREL) in accordance with the requirements and procedures laid down in Articles 45 to 45i of Directive 2014/59/EU. To assist the European Banking Authority (EBA) in promoting convergence across the Union for the setting of MREL, resolution authorities are required under Article 45j of that Directive to inform the EBA, in coordination with competent authorities, of the MREL they have set.

(2)

Commission Implementing Regulation (EU) 2018/308 (2) specifies formats and templates for the transmission by resolution authorities to the EBA of the information regarding their decisions setting the MREL. Since the adoption of that Implementing Regulation, the requirements related to the loss-absorbing and recapitalisation capacity and, in particular, the features of and methodologies for setting the MREL of credit institutions and investment firms laid down in Directive 2014/59/EU have been amended and further specified by Directive (EU) 2019/879 of the European Parliament and of the Council (3).

(3)

In order to facilitate the EBA’s monitoring of MREL decisions and to ensure a meaningful assessment of convergence across the Union for the setting of MREL, the formats and templates specified for the identification and transmission of information on MREL by resolution authorities to the EBA should be adapted to reflect the amendments to Directive 2014/59/EU, relating in particular to MREL subordination levels and the MREL applied to entities that are not themselves resolution entities.

(4)

With respect to groups that are subject to MREL on a consolidated basis, it is necessary to clarify which resolution authority should transmit the information on MREL to the EBA. Therefore, resolution authorities responsible for groups’ subsidiaries, in coordination with competent authorities, should inform the EBA of the MREL that has been set for each institution under their jurisdiction. That information should include the MREL set on the basis of a joint decision reached between the resolution authority of the resolution entity, the group-level resolution authority, where different from the former, and the resolution authority responsible for the subsidiary on an individual basis. In the absence of a joint decision, that information should also include decisions setting the MREL taken by the resolution authority of the subsidiary in accordance, where applicable, with the decision that may be taken by the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council (4).

(5)

In order to promote convergence of practices regarding MREL decisions and strengthen the monitoring role of the EBA, the reporting periods and submission dates for the transmission of information under full and simplified reporting by the resolution authorities to the EBA should be aligned.

(6)

To enhance data quality and ensure comparability, the data items set out in the reporting templates should comply with the single data point model, as is the practice in supervisory reporting. The single data point model should consist of a structural representation of the data items, identify all relevant business concepts for uniform reporting on MREL decisions and contain all the relevant specifications necessary for further development of uniform IT reporting solutions. For the same reason, the data exchange format should be set out in the EBA’s reporting system (EUCLID).

(7)

To ensure the quality, consistency and accuracy of data items reported, the data items should be subject to common validation rules.

(8)

Given the extent of the necessary amendments to Implementing Regulation (EU) 2018/308, it is appropriate, for reasons of clarity, transparency and legal certainty, to repeal that Implementing Regulation and to replace it by a new Implementing Regulation.

(9)

This Regulation is based on the draft implementing technical standards submitted to the Commission by the EBA.

(10)

The EBA has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits, and requested the advice of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010,