The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) published a new circular on the minimum requirement for own funds and eligible liabilities (MREL) for institutions and group companies for which insolvency proceedings are envisaged as a resolution strategy (Circular 08/2021). The new circular amends and replaces the previous MREL Circular 12/2019 (A). Because of extensive changes in the law that came into force at the end of 2020, the BaFin must change its administrative practice for determining MREL and sets this out in the new MREL circular. 

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