Progress towards harmonization of MREL and TLAC disclosure and reporting requirements. EBA launches consultation paper.

The European Banking Authority (EBA) launched a public consultation on the draft Implementing Technical Standard (ITS) on disclosure and reporting of the minimum requirement for own funds and eligible liabilities (MREL) and the total loss absorbency requirement (TLAC). This is the first time that the EBA introduces harmonised reporting and disclosure requirements for MREL and TLAC. By integrating disclosures and reporting, the EBA seeks to maximise efficiency by institutions, and to facilitate the use of information by authorities and market participants. The consultation runs until 22 February 2020.

This consultation paper is one of the deliverables presented in the EBA Roadmap on the risk reduction measures package, which explains the EBA Pillar 3 strategy to implement a comprehensive disclosure framework with the aim to become the EU-wide Pillar 3 hub and the EBA pathway for a more efficient and proportionate supervisory reporting.

This article provides further insight on the proposals implementing the disclosure and reporting requirements presented in the paper.