The report finds resolution entities have reached 34.7% of total risk exposure by end-2024, with smaller banks continuing to face structural challenges in meeting loss-absorbing capacity requirements.

European Union (EU) banks continued to build up minimum requirement for own funds and eligible liabilities (MREL) resources through 2024, reinforcing loss-absorbing capacity across the sector with limited disruption to existing funding and issuance models, according to the European Banking Authority’s (EBA) second Impact Assessment Report on MREL released on 24 March. MREL is the requirement that ensures that relevant EU institutions have sufficient loss absorbing capacity to support the