The BSA warmly welcomes the Bank’s decision to carry out a more holistic, wide-ranging review first, through this Discussion Paper, to be followed by a calibration CP.

The BSA has consistently supported the principle of appropriate MREL, not least because our members, via the FSCS, paid a fair amount of the total resolution bill for the bank failures of the last financial crisis. At the same time, MREL issuance could prove a drag on present recovery. In our response we  raise several wider issues, suggest improvements, and welcome others’ contributions – now is the time for good ideas to be put on the table. These should all be considered as part of the complete picture so as to arrive at the optimum overall solution.

Read the full response here.