Recital 1

(1)Directive (EU) 2024/1174 of the European Parliament and of the Council ² amended certain aspects of the minimum requirement for own funds and eligible liabilities (‘MREL’) set out in Directive 2014/59/EU. Pursuant to those amendments, resolution authorities should not determine the MREL for liquidation entities, except where the setting of a MREL exceeding an amount sufficient to absorb losses is necessary to to protect financial stability or to address the risk of contagion to the financial system, including regarding the financing capacity of deposit guarantee schemes. Additionally, Directive (EU) 2024/1174 increased the number of situations allowing resolution authorities to determine the MREL on a consolidated basis. Commission Implementing Regulation (EU) 2021/622 ³ should be amended to reflect those changes to the MREL framework in the information to be transmitted to the European Banking Authority (EBA).