The euro area banking sector and MREL: a challenge for medium-sized banks?
The introduction of the Minimum Requirement for Own Funds and Eligible Liabilities has meant that euro area banks – including some smaller banks that had no previous experience on the debt markets – have had to issue more debt. At end-October 2023, large issuers still accounted for the bulk of issua...
| Autores: | , , , , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2024 |
| País: | España |
| Institución: | Banco de España |
| Repositorio: | Repositorio Institucional del Banco de España |
| OAI Identifier: | oai:repositorio.bde.es:123456789/37655 |
| Acceso en línea: | https://repositorio.bde.es/handle/123456789/37655 |
| Access Level: | acceso abierto |
| Palabra clave: | Minimum Requirement for Own Funds and Eligible Liabilities (MREL) Bank Recovery and Resolution Directive Unsecured debt Banking sector Subordination Subordinated debt Bancos Requerimientos de capital Regulación y supervisión de instituciones financieras |
| Sumario: | The introduction of the Minimum Requirement for Own Funds and Eligible Liabilities has meant that euro area banks – including some smaller banks that had no previous experience on the debt markets – have had to issue more debt. At end-October 2023, large issuers still accounted for the bulk of issuance, but the number of issuances made by medium-sized banks had increased. These banks can achieve a lower issuance cost than their larger peers, by placing bonds that have a lower level of subordination and a shorter maturity, and thanks to their good financial ratios. However, certain challenges remain, such as their poorer credit ratings and the uncertainty regarding market capacity to absorb a larger volume of issuance by medium-sized banks. |
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