Arion Bank: The Central Bank of Iceland Resolution Authority approves the Bank‘s resolution plan and sets the minimum requirement for own funds and other eligible liabilities (MREL)
The Central Bank of Iceland Resolution Authority has approved the resolution plan for Arion Bank hf.
With the approval of the resolution plan, the Resolution Authority made a decision on the minimum requirement for own funds and other eligible liabilities (MREL), in accordance with the Act on Resolution of Credit Institutions and Investment Firms, no. 70/2020, as amended.
Arion Bank's MREL requirements are for 19.8% of Total Risk Exposure Amount (TREA), and 6.0% of the Total Exposure Measure. At the end of Q2 2025, the Bank‘s MREL-TREA ratio was 27.6% and the MREL-TEM was 22.1%, both comfortably exceeding regulatory requirements.
The Bank is also subject to a subordination requirement, set at 13.5% of TREA. Subordinated liabilities are those that rank below liabilities excluded from MREL and bail-in.
The MREL calculation is based on year-end 2024 balance sheet data. The requirements apply from the date of the announcement.