The European Banking Authority (EBA) issued today an Opinion on the trigger, calculation and transparency of the Maximum Distributable Amount (MDA). The Opinion clarifies that the MDA should be calculated taking into account both minimum (Pillar 1) and additional (Pillar 2) capital requirements which should be met at all times, as well as the combined buffer requirement. The Opinion is designed to support the consistent application of distribution restrictions laid down in the Capital Requirements Directive (CRD) in order to promote a level playing field across the Single Market, and to give greater certainty for banks' capital planning needs. It also calls for transparency in Pillar 2 outcomes for all banks, with a view to providing clarity for investors in banks. The Opinion advises the European Commission to review the CRD text in the future to ensure certainty and more consistency.

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