1. Introduction -- 2. The Enigma of Mandatory Disclosures -- 3. Mandatory Disclosures as a Principal Agent Paradigm -- 4. Information asymmetry and banking regulations -- 5. Information content and pillar 3 disclosures -- 6. Conclusion.

We examine the risk sensitiveness of minimum requirement for own funds and eligible liabilities (MREL)‐eligible debt yields in a sample of 63 European banking groups during the period 2009Q3-2019Q2 in 14 European countries. We conclude that MREL‐eligible debt is risk sensitive, as investors...