Recital 6

(6) Directive (EU) 2019/879 amended Directive 2014/59/EU to introduce specific rules on the indirect subscription of internal MREL eligible resources, that is of own funds and liabilities that meet the conditions of Article 45f(2) of Directive 2014/59/EU, within resolution groups. In order to operationalise those rules and to ensure that that indirect subscription is carried out in a prudentially sound manner, the European Supervisory Authority (European Banking Authority) (EBA), established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council (10), was mandated under Article 45f(6) of Directive 2014/59/EU to develop draft regulatory technical standards to specify methods for such an indirect subscription of eligible resources. However, as highlighted by the EBA in its letter to the Commission dated 25 January 2021, there were several inconsistencies between the requirements for the delegation laid down in Directive 2014/59/EU and the existing prudential rules laid down in Regulation (EU) No 575/2013, which did not allow the application of the prudential treatment needed for the mandate to be fulfilled as originally intended. More precisely, the EBA noted that Regulation (EU) No 575/2013 did not allow for the deduction of internal MREL eligible resources and, subsequently, for the application of an appropriate risk weight in all the cases relevant for the mandate under Directive 2014/59/EU. Similar issues were identified in the area of the leverage ratio requirement laid down in Regulation (EU) No 575/2013. In light of those legal constraints, the methods developed by the EBA should be incorporated directly into Regulation (EU) No 575/2013. Consequently, Article 45f(6) of Directive 2014/59/EU should be deleted.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-16 · Text as adopted (Official Journal); later amendments are not incorporated in this text.