The purpose of the report is to display the improvement in the MREL shortfalls as of December 2020 mostly driven by the largest institutions.

The report outlines:

• A decrease of January 2024 MREL target shortfall from EUR 115bn as of December 2019 to EUR 67,6bn for 110 resolution groups.
• A shortfall of EUR 30bn for other banks and other systemically important institutions (OSIIs)
• Little progress for small banks as their MREL decisions were issued in 2018 or 2019.
• Intermediate target as of January 2022 resulting in limited shortfall of EUR 13,3bn among 38 out of 260 other banks and O-SIIs.

Regarding the Internal MREL as loss absorbing capacity streamed from parent entity to subsidiary, EBA reports the following:

• 128 decisions received by EBA from authorities in the first year of BRRD II implementation.
• 73% of Risk-Weighted Assets expected to receive internal MREL decisions in steady state.
• EUR 36bn of shortfall for 62 out of 128 non-resolution groups in the sample.