Recital 11

(11) There are liquidation entities for which the resolution authority might consider that the MREL should exceed the amount for loss absorption where such higher amount is necessary to protect financial stability or to address the risk of contagion to the financial system, including regarding the financing capacity of deposit guarantee schemes. Only in those situations should a resolution authority be able to determine in a proportionate way the MREL for the liquidation entity, which should consist of an amount sufficient to absorb losses, increased by the amount strictly necessary to properly address the potential risks identified by the resolution authority. The liquidation entity should then comply with the MREL and should not be exempted from the prior permission regime laid down in Article 77(2) and Article 78a of Regulation (EU) No 575/2013. Intermediate entities that belong to the same resolution group as the liquidation entity concerned should continue to be required to deduct from their internal MREL eligible resources their holdings of internal MREL eligible resources issued by that liquidation entity. In addition, since liquidation proceedings take place at the level of the legal entity, liquidation entities still subject to the MREL should comply with that requirement on an individual basis only. Lastly, certain eligibility requirements related to the ownership of the liability concerned are not relevant since without the exercise of write-down and conversion powers, there would be no need to preserve the control of the subsidiary by the resolution entity. Those eligibility requirements should therefore not apply.

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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.