Recital 22

(22)The Commission fully recognises the importance of ensuring a proportionate treatment of entities whose MREL does not exceed the own funds requirements. However, the submission of an application requesting the prior permission to reduce their eligible liabilities is an inherent feature of the prior permission regime as set out in Article 78a(1) of Regulation (EU) No 575/2013 and hence cannot be waived. Nevertheless, in order to reduce the administrative burden of those entities and of their resolution authorities to a minimum, the former should be allowed to submit a simplified application to request a prior permission and the latter should be allowed to grant such permission on the basis of a tacit agreement,