Banking supervision glossary

An institution’s body or bodies which are empowered to set its strategy, objectives and overall direction, and which include the persons who effectively direct the business of the institution (management function) and/or oversee and monitor management decision-making (supervisory function).

maximum distributable amount

A governance structure of the Single Supervisory Mechanism, established by the ECB according to Article 25 of the SSM Regulation, with a view to ensuring separation between monetary policy and supervisory tasks and to resolving differences of views expressed by the competent authorities of participating Member States concerned in cases where the Governing Council objects to a draft decision by the Supervisory Board. The panel includes one member per participating Member State, chosen from among the members of the Governing Council and the Supervisory Board, and decides by simple majority, with each member having one vote. See also Single Supervisory Mechanism (SSM)

The requirement for all EU credit institutions, with the aim of enabling credit institutions to absorb losses in case of failure. The MREL was issued by the European Commission in the Bank Recovery and Resolution Directive (BRRD). It has the same goal as the total loss-absorbing capacity (TLAC) requirement. However, the specific capital requirements prescribed by the MREL are calculated differently, following criteria set by the EBA.

See minimum requirement for own funds and eligible liabilities (MREL)