Risk Weighted Assets versus Total Assets: Does It Matter for MREL Requirements?

12-07-2016

This notes provides a short summary of four external papers commissioned by the ECON Committee to assess the distributional consequences of using a risk-weighted metric or an unweighted one when setting requirement for own funds and eligible liabilities. Those findings were presented to the ECON Committee on Monday 11 July 2016, in advance of the hearing with Mrs König, Chair of the Single Resolution Board, on Wednesday 13 July 2016.

This notes provides a short summary of four external papers commissioned by the ECON Committee to assess the distributional consequences of using a risk-weighted metric or an unweighted one when setting requirement for own funds and eligible liabilities. Those findings were presented to the ECON Committee on Monday 11 July 2016, in advance of the hearing with Mrs König, Chair of the Single Resolution Board, on Wednesday 13 July 2016.