Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with the Bank of England on increasing the proposed eligibility threshold in its consultation on minimum requirement for own funds and eligible liabilities (MREL) to £50bn.

The Government is continuing to engage closely with the Bank of England on its recent consultation on its approach to setting a minimum requirement for own funds and eligible liabilities (MREL), which closed on 24 January. The Bank of England sets MREL policy, including the thresholds for MREL, independently in its capacity as resolution authority.

The Government recognises the varied feedback raised by industry, including on the asset-based threshold. The Government’s engagement with the Bank of England has included and will continue to include consideration of this feedback as well as the impacts on economic growth.