We have today published a Position Paper in respect of the Minimum Requirement for own funds and Eligible Liabilities (MREL).  The Position Paper sets out our intended approach to setting MREL as well as various eligibility criteria we propose in relation to MREL Eligible Liabilities.  A copy of the Position Paper is available at:

MREL Position Paper  

MREL will be applicable only to Jersey Incorporated Banks.  We will set MREL in consultation with the Jersey Financial Services Commission (JFSC) and, where relevant, Home Resolution Authorities.  The level of MREL that banks are required to hold will vary depending on several factors including the preferred resolution strategy.  

Our planned approach to contractual bail-in requirements is also set out in the Position Paper.  

The Position Paper reflects that further work is needed to determine any required changes to the Resolution Law and finalise the practical elements of setting, monitoring and enforcing MREL.  We plan to continue working with the Government of Jersey and the JFSC in these respects.  

The Position Paper invites feedback from interested stakeholders through to the end of March 2024.  

Thereafter, it is intended that we will consult on a draft MREL Policy Statement in Q3 2024 with the aim of finalising this before the end of 2024.  There will then be a four-year transition period for Jersey Incorporated Banks to comply with MREL.