We’ve suggested for instance that shortening the timeframe for mutualisation of the single resolution fund would be helpful to give a clearer perspective that a single European backstop will come within a reasonable timeframe, helping to cancel the link between banks and sovereigns.
The purpose of the MREL is to ensure that it is possible to resolve the individual firm in a crisis. The bail-in tool is of particular significance in this respect. I will get back to that. The MREL has two components: a loss-absorption amount and a recapitalisation amount. The loss-absorption amount corresponds to the losses the institution can be expected to have to absorb.