The amendment is a step in the right direction. However, it does not solve the problem; there are still SIFIs for which the requirements are not sufficiently high for the institutions to be recapitalised and continued in a crisis situation. Furthermore, the problem with the current requirement for mortgage credit institutions is that it is not risk-sensitive. The MREL is.
It increases when risks increase, as they typically do in bad times. That is why we need an MREL for mortgage credit institutions. And here is the good news. At Danmarks Nationalbank we have calculated the costs of introducing an MREL for mortgage credit institutions now that we have the 8 per cent requirement. And the costs are negligible.