CHALLENGE
MREL as an issue
MREL stands for Minimum Requirement for Own Funds and Eligible Liabilities. It is a regulatory requirement imposed on banks and other financial institutions to ensure that they have sufficient loss-absorbing capacity in the event of financial distress or failure.
SOLUTION
Trust and pricing
MREL requirements are set by regulatory authorities, such as central banks and banking supervisors, in accordance with international standards, including those established by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS). This harmonization helps promote consistency and comparability across jurisdictions.
We are helping Financial Institutions to moderate the process, linking investors and potential investors with companies seeking funds to close the MREL gap. The crucial point here is fair pricing of underlying securities considering fundamental data and business prospects of a financial institution. MREL price is determined on a case-by-case basis utilizing relative price valuation methods. Machine Learning techniques are used to perform the calculation.
RESULTS
A successful transition and operational excellence
- Pricing of MREL debt
- Fostering communication between investors and Financial Institutions
- Sharing best practices
- Analysis of country specific requirements