External Minimum Requirements for Own Funds and Eligible Liabilities (MRELs) – 2026 Disclosure

External minimum requirements for own funds and eligible liabilities (MRELs) – 2026

Public disclosure for firms with a resolution entity incorporated in the UK for which a bail-in or transfer preferred resolution strategy has been set.
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Published on

16 April 2026

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1: Our approach to MREL disclosure

1. This publication covers firms with a resolution entity incorporated in the UK for which a bail-in or transfer preferred resolution strategy has been set.

2. Our approach to MREL disclosure is described below, including supporting assumptions and firm-specific information for bail-in and transfer preferred resolution strategy firms. Firm-specific MRELs are set out in Table A.

3. The format of the disclosure for bail-in preferred strategy firms is unchanged from the Bank’s April 2025 disclosure. Following changes to the Bank’s MREL policy that came into effect from 1 January 2026, transfer preferred resolution strategy firms have been set external MRELs equal to their minimum capital requirements (MCR). [1] Past disclosures can be found on the Bank’s website.

4. The Bank has publicly disclosed external MRELs on an annual basis for several years. The MREL framework is now well established. Most firms have been required to meet their end-state external MRELs since January 2022 or 2023, and many firms have publicly disclosed a range of MREL-related information. In addition, from 2027, firms that have been directed to meet MREL above MCR will be required under the Disclosure (CRR) Part of the Prudential Regulation Authority (PRA) Rulebook to make new or expanded disclosures relating to MREL.

5. In light of these developments, the Bank intends to stop disclosing individual firm external MRELs from 2027. High-quality and timely disclosure remains important and would be achieved through the PRA’s MREL disclosure requirements on firms. The Bank expects, however, to continue periodically to disclose our preferred resolution strategies for individual firms and, where relevant, the timing of any related transitional arrangements.

Assumptions and supporting information

1. The MRELs set out in this disclosure apply as at 1 January 2026 unless otherwise stated. MRELs have been set on the basis of the current MREL statement of policy (SoP). [2]

2. This publication contains the 2026 external MRELs for all firms with a resolution entity incorporated in the UK for which an MREL above MCR has been communicated. Individual external MRELs are based on balance sheet data as at 31 December 2025 and MCRs as at 27 March 2026. Any subsequent changes to balance sheet data and MCRs would not be reflected in this disclosure and may affect a firm’s MREL as set out in Table A.

3. For firms whose binding MCR is based on risk-weighted assets (RWAs), Table A contains each firm's Pillar 1 and Pillar 2A requirements expressed as a percentage of the firm's RWAs. For firms with a leverage-based binding MCR, Table A contains each firm's requirement expressed as a percentage of the total value of the firm’s leverage exposures (LEs). This is based on the current definition of the ‘total exposure measure’ as set out in the Leverage Ratio (CRR) Part of the PRA Rulebook. [3] MRELs expressed as a percentage of LEs are given to the nearest 0.05% to align the number of decimal places with the leverage-based binding MCR. In the context of these paragraphs, a ‘binding’ capital requirement means the requirement which requires the greatest quantum of total capital resources at a given point in time. More than one capital requirement may be legally binding at one time.

4. The buffers included in Table A comprise:

a. A capital conservation buffer of 2.5%;

b. Financial Stability Board (FSB) global systemically important bank (G-SIB) buffers, based on the FSB’s 2025 list of G-SIBs; [4]

c. The other systemically important institutions (O-SII) buffer, in line with the PRA’s current published approach [5] and rates [6].

The UK countercyclical capital buffer (CCyB) rate is assumed to be 2%, as applicable at 1 April 2026. [7] In all other jurisdictions the rate is assumed to be 0% (in practice positive rates do apply currently in some jurisdictions).

The buffers in Table A do not include any PRA buffer, the sizes of which are firm-specific and confidential. The calculation of firms’ combined buffers above MREL is in line with PRA supervisory statement 16/16, [8] where relevant.

1. The Bank sets the MRELs that will apply to individual firms on an annual basis for the year ahead, based on the latest available regulatory data on each firm. The MREL set for a specific firm in any given year will ultimately depend on a number of factors including, but not limited to:

a. changes to the firm and its balance sheet, including changes to its regulatory capital requirements and RWAs;

b. the Bank’s preferred resolution strategy for the firm (which the Bank must review annually);

c. an assessment of the concerns regarding the resolvability of the firm, including the progress of the firm in achieving resolvability;

d. where applicable, discussions within international crisis-management groups; and

e. any future changes in Bank, PRA or international policy, or in the applicable legal regime, which change the way MREL or capital requirements are calculated.

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2: Bail-in preferred resolution strategy

1. The firms that must meet MREL on the basis of a bail-in preferred resolution strategy are: Barclays, Coventry Building Society, HSBC (Group, and European Resolution Group), Investec, Lloyds Banking Group, Nationwide Building Society, NatWest Group, Santander UK, [9] Skipton Building Society, Standard Chartered and Yorkshire Building Society. Table A shows the binding external MRELs that are currently in effect for these firms.

2. The MREL shown in Table A for Investec is equal to its MCR. Investec is expected to meet its interim external MREL from 1 January 2028 and its end-state external MREL from 1 January 2032.

3. UK resolution entities, other than HSBC Group (for which refer to paragraph 14 below), are required to maintain end-state external MRELs equivalent to the higher of (on a consolidated basis):

G-SIBs, the higher of:

• 2x(Pillar 1 plus Pillar 2A);
• two times the applicable leverage ratio requirement or 6.75% of LEs (in line with the FSB’s Total Loss Absorbing Capacity (TLAC) standard); or

• 18% of RWAs (in line with the FSB’s TLAC standard).
  D-SIBs and any other UK bail-in resolution entities:

• 2x(Pillar 1 plus Pillar 2A); or

• if subject to a leverage ratio requirement, two times the applicable requirement (ie 6.5% if the leverage ratio is 3.25%).

• The preferred resolution strategy for HSBC Group is a multiple point of entry bail-in strategy. The end-state external MRELs given above that apply to the European Resolution Group (HSBC Holdings plc, HSBC Bank UK plc, HSBC Bank plc and their subsidiaries) will contribute towards meeting HSBC Group’s requirement, in line with the FSB’s TLAC standard for G-SIBs. The HSBC Group requirement reflects the higher of: (i) two times the sum of Pillar 1 and Pillar 2A, ie 2x(Pillar 1 plus Pillar 2A); (ii) the higher of two times the applicable leverage ratio requirement or 6.75% (in line with the FSB’s TLAC standard) of leverage exposures; or (iii) 18% of risk-weighted assets (in line with the FSB’s TLAC standard); and (iv) the sum of requirements relating to each of its resolution groups and other group entities or sub-groups located outside these resolution groups. The end-state ‘sum of parts’ figures for (iv) are estimates based on current information about requirements that would apply in other jurisdictions. HSBC European Resolution Group is not itself subject to an MCR and the binding MCR shown in Table A is calculated only for the purpose of determining an external MREL for the HSBC European Resolution Group. It is shown for illustrative purposes only.

External MRELs – 2026

Table A: External MRELs for banks and building societies with a UK incorporated resolution entity and a bail-in preferred resolution strategy

| Firm | Binding minimum capital requirement | MREL | Loss-absorbing capacity
(MREL + buffers) |
| --- | --- | --- | --- |
| Barclays | 12.8% RWAs | 25.5% RWAs | 30.5% RWAs |
| Coventry Building Society | 11.5% RWAs | 23.0% RWAs | 27.5% RWAs |
| HSBC: Group | 3.25% LEs | 23.2% RWAs | 28.2% RWAs |
| HSBC: European Resolution Group | 11.3% RWAs | 6.75% LEs | 6.75% LEs |
| Investec | 8.5% RWAs | 8.5% RWAs | 12.2% RWAs |
| Lloyds Banking Group | 10.5% RWAs | 21.0% RWAs | 25.3% RWAs |
| Nationwide Building Society | 3.25% LEs | 6.50% LEs | 7.54% LEs |
| NatWest Group | 3.25% LEs | 6.50% LEs | 7.68% LEs |
| Santander UK | 12.3% RWAs | 6.75% LEs | 7.96% LEs |
| Skipton Building Society | 10.6% RWAs | 21.2% RWAs | 25.5% RWAs |
| Standard Chartered | 3.25% LEs | 6.75% LEs | 7.63% LEs |
| Yorkshire Building Society | 8.0% RWAs | 16.0% RWAs | 20.5% RWAs |

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3: Transfer preferred resolution strategy

1. The revised MREL SoP increased the indicative total assets threshold range, from £15 billion to £25 billion to a revised range of £25 billion to £40 billion, reflecting nominal growth in the period since its introduction. Within the revised range a firm-specific assessment is made to determine the appropriate preferred resolution strategy.

2. As a consequence of this change in the policy framework, several firms that had previously been set a bail‑in preferred resolution strategy were reassessed. Following this reassessment, and consistent with the revised MREL SoP, Leeds Building Society, Metro Bank and OSB Group have now been set a transfer preferred resolution strategy.

3. Following the application of the revised framework:

a. the firms that have been set a transfer preferred resolution strategy are ClearBank, Leeds Building Society, Metro Bank, Monzo Bank, OSB Group and Starling Bank; and

b. these firms have been set external MRELs equal to their MCR.

1. Refer to footnote 8 of Statement of policy: The Bank of England’s approach to setting a minimum requirement for own funds and eligible liabilities (MREL) (2025).
2. Bank of England (2025), The Bank of England’s approach to setting a minimum requirement for own funds and eligible liabilities (MREL).
3. Leverage Ratio (CRR) Part of the PRA Rulebook.
4. FSB (2025), 2025 List of Global Systemically Important Banks (G-SIBs).
5. PRA (2025), The PRA’s approach to the implementation of the O-SII buffer.
6. PRA (2025), Other systemically important institutions (O-SII) buffer rates for ring-fenced banks, large domestic banks, and large building societies.
7. Bank of England (2026), Financial Policy Committee Record – April 2026.
8. PRA (2020), SS16/16, The minimum requirement for own funds and eligible liabilities (MREL) – buffers and Threshold Conditions.
9. This disclosure does not reflect any changes which may occur as a result of Santander’s proposed acquisition of TSB.

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