Directive 2014/59/EU on Bank Recovery and Resolution (BRRD I) was i.a. transposed into Icelandic law with Act No. 70/2020 on the resolution of credit institutions and investment firms (the Act). On 8th of December 2021, the Icelandic Resolution Authority of the Central Bank of Iceland published its policy on minimum requirements for own funds and eligible liabilities (MREL-Requirement) according to Art. 17 of the Act (hereinafter the MREL-Policy).
The Resolution Authority announced today that a resolution plan had been approved for Íslandsbanki and thereby an MREL-Requirement for the Bank. The decision is based on the aforementioned MREL-Policy.
The MREL requirement is 21.2% of the Bank‘s Total Risk Exposure Amount (TREA) as per year-end of 2021 and applies from the date of the announcement.