EU banks boost MREL buffers as authority flags challenges

The European Banking Authority (EBA) this week published its second Impact Assessment Report on minimum requirement for own funds and eligible liabilities (MREL), evaluating its effects on EU banks, markets and funding structures.

The report found that EU banks have continued to build up MREL resources, while also improving market access with limited impact on business models.

At the same time, it highlighted that structural challenges persist for smaller banks, particularly in adapting to the framework.