The IIF welcomes the Bank of England's approach to calibrate internal MREL at the low end of the Financial Stability Board's 75% to 90% range - provided other resolution authorities follow the same logic.' '
By making the scaling of internal MREL/TLAC requirements by other host jurisdictions a factor for consideration in its own calibration of a material U.K. subsidiary's internal MREL, the Bank has issued a constructive call for international cooperation and coordination. The IIF strongly supports this approach. We are convinced that international cooperation is best suited to strike the balance between legitimate national interests in preserving operational continuity and the interests of banking groups in maintaining flexibility to tackle misallocation risks and thus preventing contagion within the group and beyond.'
The IIF is encouraging resolution authorities around the globe' to enter into a constructive dialogue with the aim to come to a global' agreement that reflects the type of collaborative' approach that the Bank of England is promoting.'