Safe Bank

The MREL requirement is an element of the resolution framework. The introduction of the MREL requirement is directly related to the basic principle of resolution, which is the obligation to cover the institution's losses first by shareholders and then by creditors. The aim of the article is to find an answer to the question whether the statutory powers (sanctions) granted to the resolution authority give a real chance to influence the entity in order to ensure that it meets the MREL requirement. For this purpose, the legal nature of the sanctions and their economic effectiveness were assessed. The analysis leads to the conclusion that individual sanctions have different dominant functions (corrective, preventive and repressive) and are characterized by varying effectiveness, understood as the ability to affect the bank in such a way as to increase the probability of meeting the MREL requirement. A legal instrument characterized by model high efficiency (in terms of direct impact on reducing the MREL deficit) is issuing recommendations. Financial penalties, on the other hand, are the least effective (according to the above-mentioned definition of effectiveness), but at the same time they are connected with other premises and impact channels justifying their application.

Advances in climate science are providing a growing understanding of the physical risks associated with climate change. From the banking sector’s perspective, however, the transfor mational risks related to potential regulations to address climate change are at least as important. In this paper, we analyze, using a unique sample of 26,000 people from 26 countries, how more frequent extreme weather events will lead to growing climate concerns and more signi