Recital 6

(6) To ensure that the possibility to comply with the internal MREL on a consolidated basis is available only in the relevant cases and does not lead to a shortage of internal MREL eligible resources across the resolution group, the power to set the internal MREL on a consolidated basis for intermediate entities should be a discretionary power of the resolution authority subject to certain conditions. The intermediate entity should be a direct subsidiary of a resolution entity which is a Union parent financial holding company or a Union parent mixed financial holding company established in the same Member State and part of the same resolution group. That resolution entity should not directly hold subsidiaries, other than the intermediate entity, that are institutions or that are entities subject to the MREL. Alternatively, the intermediate entity concerned should comply with the additional own funds requirement on the basis of its consolidated situation only. In both cases, however, compliance with the internal MREL on a consolidated basis should not, in the assessment of the resolution authority, impair in a material way the credibility and feasibility of the group resolution strategy nor the application by the resolution authority of the power to write down or convert relevant capital instruments and eligible liabilities of the intermediate entity concerned or of other entities in its resolution group. One situation where the setting of the internal MREL on a consolidated basis would be detrimental to the resolvability of the resolution group is where the amount necessary to comply with that MREL would not suffice to ensure compliance with the own funds requirements applicable after the exercise of write-down and conversion powers.

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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.