Key data
| Regulation | Corrigendum to Directive (EU) 2019/879 — Loss-absorbing capacity and recapitalisation (MREL) |
|---|---|
| Corrected regulation | Directive (EU) 2019/879, amending Directive 2014/59/EU (BRRD) and Directive 98/26/EC |
| Publication | 8 May 2026 |
| Entry into force | Not specified |
| Affected parties | Credit institutions, banks, investment firms and EU resolution authorities |
| Category | European Regulation |
| Official reference | OJ:L_202690373 — EUR-Lex |
Banks and investment firms subject to MREL requirements have an immediate task ahead: to review whether the technical correction published on 8 May 2026 modifies any of their resolution obligations. The corrigendum affects the legal text of Directive (EU) 2019/879, which in turn amended Directive 2014/59/EU (BRRD) regarding loss-absorbing capacity and recapitalisation.
This is not a new regulation, but rather a correction of technical errors in an already applicable text. However, in the field of bank resolution, a corrected technical error can translate into concrete changes to the MREL levels required or the way resolution authorities apply the regulation.
What does this regulation establish?
Directive (EU) 2019/879 amended the European bank resolution framework (BRRD) to strengthen the loss-absorbing capacity of financial entities. Its centrepiece is MREL (Minimum Requirement for own funds and Eligible Liabilities): the minimum cushion of own funds and eligible liabilities that banks and investment firms must maintain so that, in the event of failure, they can be resolved in an orderly manner without resorting to public money.
This corrigendum published in May 2026 does not introduce new substantive obligations, but rather corrects technical errors in the applicable legal text. However, these corrections may have direct implications on two levels:
- National transposition: Member States must verify whether the corrections affect their internal regulatory frameworks derived from the BRRD.
- Requirements imposed by resolution authorities: Financial entities must check whether any applicable obligation is modified by the corrected text.
The corrected regulation also affects Directive 98/26/EC, on the finality of settlement in payment and securities settlement systems, although the main focus of the corrigendum is the BRRD and MREL.
Economic and operational impact
A technical correction in a directive of this nature may seem minor, but in the context of MREL it has real operational consequences. MREL requirements determine how much capital and eligible debt each entity must maintain, and any variation in the legal text can affect:
- The calculation of the minimum MREL levels required by the resolution authority.
- The eligibility of certain financial instruments as eligible liabilities.
- The way the creditor hierarchy is applied in a resolution process.
- The national transposition already carried out by Member States, which may require adjustments.
For entities that already have their MREL levels set by the competent resolution authority, the immediate impact may be limited. However, those in the process of reviewing their resolution plans or in the phase of issuing eligible instruments should pay special attention to the corrected text before closing any transaction.
Who does it affect?
- Credit institutions subject to MREL requirements in any EU Member State.
- Banks under the supervision of the Single Resolution Mechanism (SRM) or national resolution authorities.
- Investment firms included in the scope of Directive 2014/59/EU (BRRD).
- Resolution authorities national and European, which must verify whether their application frameworks are affected.
- Member States that have transposed Directive 2019/879 and must review whether the correction requires adjustments to their internal regulations.
- Legal and compliance departments of financial entities, which must analyse the impact of the corrected text on current obligations.
Practical example
A medium-sized Spanish bank subject to MREL requirements set by the Single Resolution Board (SRB) currently has a plan to issue eligible debt to meet its MREL level before the next review deadline. Its legal team detects that the corrigendum published on 08/05/2026 corrects an article of Directive 2019/879 that affects the definition of eligible liabilities.
Before closing the issuance, the bank must compare the corrected text with the eligibility criteria applied by the SRB in its MREL decision. If the correction clarifies or modifies any eligibility criterion, it could affect the structure of the instrument the bank intends to issue. Acting without making this prior verification poses a compliance risk that the resolution authority could detect in the next plan review.
What should companies do now?
- Download and read the corrected text: Access the corrigendum published in EUR-Lex (OJ:L_202690373) and compare it with the original text of Directive (EU) 2019/879 to identify exactly which articles or sections have been modified.
- Review current MREL obligations: Compare the corrected text with the MREL requirements set by the competent resolution authority (SRB or national authority) to determine whether any applicable obligation is affected.
- Verify national transposition: Check whether the national regulation transposing the BRRD needs to be updated as a result of the corrections, in coordination with the legal team and, if appropriate, with the competent authority.
- Review instruments in the process of issuance: If the entity has planned the issuance of eligible liabilities to meet MREL, verify that the eligibility criteria are not altered by the corrected text before closing the transaction.
- Document the impact analysis: Keep a written record of the analysis carried out and the conclusions reached, as part of the entity's regulatory compliance file.
Frequently asked questions
What is the MREL Directive and which entities does it affect?
Directive (EU) 2019/879 amended the BRRD (Directive 2014/59/EU) to establish the minimum own funds and eligible liabilities (MREL) requirements that credit institutions and investment firms must maintain, ensuring orderly resolution in the event of failure.
What exactly does this May 2026 corrigendum correct?
The corrigendum published on 08/05/2026 corrects technical errors in the legal text of Directive (EU) 2019/879. The corrections affect the applicable text and may have implications for national transposition and the requirements imposed by resolution authorities.
Should banks change their MREL requirements because of this correction?
Financial entities subject to MREL requirements must review whether the corrections modify any applicable obligation. The review should be carried out in coordination with the competent resolution authority and the internal legal team.
What should Member States do in response to this correction?
Member States and their competent authorities must verify whether the corrections affect their internal regulatory frameworks for transposing Directive 2014/59/EU (BRRD), and if necessary update the national regulations.
How urgent is it to review this correction?
The urgency depends on each entity's situation. Those with MREL levels already set and no planned issuances may have limited immediate impact. However, those in the process of reviewing resolution plans or issuing eligible instruments should prioritise the review before closing any transactions.
Official source
EUR-Lex: https://eur-lex.europa.eu/ — Reference: OJ:L_202690373
Disclaimer: This article is for informational purposes only and does not constitute legal advice. The analysis and recommendations presented are based on the information available as of the publication date. Regulatory requirements may change, and the specific impact of this correction will depend on each entity's particular circumstances. We recommend consulting with qualified legal and compliance advisors to assess the specific implications for your organisation and to ensure full compliance with applicable regulations. CambiosLegales and its authors assume no liability for decisions made based on this information.