EBA: Publishes peer review on authorisation under the Payment Services Directive
- EBA published its annual quantitative Report on minimum requirements for own funds
- The Report is complemented by an analysis looking into the impact of the MREL framework on a number of relevant dimensions
- The amount of eligible instruments increased by 6% for the total sample in the period 2019Q4-2021Q4
- The stock of eligible instruments stood at 31% of TREA on average as of 2021Q4, up from a level of 30% as of 2019Q4
- These banks seemed to suffer from intrinsic financial health issues, as evidenced by below investment grade credit rating
- The impact of the MREL framework on banks’ profitability appeared manageable, although heterogeneous among types of bank
