The Bank of England is today announcing new rules designed to make it easier to manage the failure of banks and building societies in an orderly way, as part of reforms to end taxpayer bailouts in the UK.
During the financial crisis, governments were forced to bail out failing banks, rather than risk the damage that a disorderly failure would have had on the wider economy and financial system. Some banks were too big to be allowed to fail.
- The Bank of England’s approach to setting a Minimum Requirement for own funds and Eligible Liabilities (MREL) – responses to consultation and Statement of Policy
- Policy Statement: PS30/16 – The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions
- Supervisory Statement: SS16/16 – The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions