CNB complements its approach in its competence as the national resolution authority
In order to ensure a common understanding, the Czech National Bank has supplemented its General Approach to Setting a Minimum Requirement for Own Funds and Eligible Liabilities (MREL) with an explanatory note stating that institutions will take a similar approach to meeting the MREL to that applied when meeting capital requirements, i.e., they will meet the requirement at all times based on the current situation of the institution.
Moreover, in the context of greater transparency and reflecting the ongoing consolidation of the banking sector in the Czech Republic, the CNB has complemented its already published approach to setting contributions to the resolution financing arrangement by its approach to addressing the dissolution of an institution as a result of a national merger.
The full text of the CNB’s general approach to setting a minimum requirement for own funds and eligible liabilities is available at https://www.cnb.cz/en/resolution/general-approach-of-the-czech-national-bank-to-setting-a-minimum-requirement-for-own-funds-and-eligible-liabilities-mrel/index.html
The revised text of the CNB’s approach to setting contributions to the resolution financing arrangement is available at https://www.cnb.cz/en/resolution/contributions-to-resolution-financing-arrangement/