Regulation: English-law bonds could be excluded from MREL post-Brexit

The European Banking Authority, which oversees the union’s banking system, already warned in October that English-law bonds now counting toward the EU’s minimum requirement for own funds and eligible liabilities (MREL) could be discounted once the UK leaves the EU.

However, the Single Resolution Board (SRB), which sets the requirements for banks in the eurozone, announced that liabilities issued under third-country law will be excluded from MREL unless the bank can show that their write-down or bail-in would “be effective”.