Calculation of MREL

The reference to total liabilities, including own funds, in Article 45b(4), (5) and (7) " The minimum requirement shall be calculated as the amount of own funds and eligible liabilities expressed as a percentage of the total liabilities and own funds of the institution. " in Article 45(1) of Directive 2014/59/EU (BRRD) shall should be read as the sum of "own funds" and "total liabilities, less those elements of own funds that are included in the amount of total liabilities". The objective of adjusting the amount of total liabilities is to ensure that there is no double counting. Disclaimer: The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.