EBA has issued its 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. It further clarifies that Pillar 1 and Pillar 2 capital requirements should always sit beneath the combined buffer. EBA says there should be a review of Article 141 CRD4 to avoid different interpretations, ensure consistency with the stacking order of capital requirements and to enable limited supervisory flexibility regarding distributions. (Source: EBA Publishes MDA Opinion)