Compliance with the minimum requirement for own funds and eligible liabilities – Q1 2022

Press release 17 June 2022

All systemically important banks and other institutions were compliant with the minimum requirement for own funds and eligible liabilities (MREL) at the end of the first quarter. Today, the Swedish National Debt Office released its new quarterly report on MREL compliance.

MREL is being phased in until 1 January 2024. To enable a linear build-up of MREL, including subordination requirements, the Debt Office has set target levels that apply as of 1 January 2022.

At the end of the first quarter of 2022, all systemically important institutions met the MREL set for them. This means that the institutions reached the target levels for risk-based and non-risk-based MREL.

All institutions also had a sufficient amount of own funds and subordinated liabilities for the target levels of the subordination requirement.

On 31 March 2022, the systemically important institutions had issued SEK 144 billion in subordinated liabilities. In order to meet the subordination requirements that will apply as of 1 January 2024, they will need to issue a further SEK 19 billion in subordinated liabilities.

The Debt Office makes decisions on MREL annually. Further information about MREL and its application for Swedish institutions is available in the Debt Office’s MREL policy and on the Debt Office’s website.

Report: Minimum requirement for own funds and eligible liabilities (MREL) – Compliance Q1 2022