The rule in plain words
Minimum requirement for own funds and eligible liabilities (MREL) must be reported.
EBA checks it for eight rows: total risk exposure amount (TREA), total exposure measure (TEM), own funds and eligibile liabilities, own funds and subordinated liabilities (0210), own funds and eligible liabilities as a percentage of the total risk exposure amount, own funds and subordinated liabilities (0310), own funds and eligible liabilities as a percentage of the total exposure measure, and own funds and subordinated liabilities (0330). That makes eight checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Minimum requirement for own funds and eligible liabilities (MREL): Own funds and eligible liabilities as a percentage of the total exposure measure is reported
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Report a value in this cell. A 0 counts as reported; a cell left out of the file does not.
- 03It runs only when your filing indicators mark M 01.00 as reported.
- 04This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
MREL and TLAC key metrics (resolution groups / entities) (KM2) (M 01.00)
Rows
- 0100Total risk exposure amount (TREA)
- 0110Total exposure measure (TEM)
- 0200Own funds and eligibile liabilities
- 0210Of which: own funds and subordinated liabilities
- 0300Own funds and eligible liabilities as a percentage of the total risk exposure amount
- 0310Of which: own funds and subordinated liabilities
- 0320Own funds and eligible liabilities as a percentage of the total exposure measure
- 0330Of which own funds and subordinated liabilities
Column
- 0010Minimum requirement for own funds and eligible liabilities (MREL)
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
not(empty({M_01.00,r0320,c0010,}))The next five:
not(empty({M_01.00,r0200,c0010,}))not(empty({M_01.00,r0310,c0010,}))not(empty({M_01.00,r0330,c0010,}))not(empty({M_01.00,r0100,c0010,}))not(empty({M_01.00,r0210,c0010,}))And 2 more, the same formula for the other cells it covers.
Other rules on M 01.00
- A calculation check on MREL and TLAC key metrics (resolution groups / entities) (KM2) (v10750_m)Warning
- A calculation check on MREL and TLAC key metrics (resolution groups / entities) (KM2) (v10749_m)Warning
- Own funds and eligibile liabilities must equal own funds and eligible liabilities as a percentage of the total exposure measure times total exposure measure (TEM) (v10748_m)Warning
- Own funds and subordinated liabilities times total risk exposure amount (TREA) must equal own funds plus eligible liabilities subordinated to excluded liabilities (v10754_m)Warning
- Own funds and eligibile liabilities must equal own funds and eligible liabilities as a percentage of the total risk exposure amount times total risk exposure amount (TREA) (v10747_m)Warning
- Own funds and subordinated liabilities times total exposure measure (TEM) must equal own funds plus eligible liabilities subordinated to excluded liabilities (v10755_m)Warning
- Own funds and eligibile liabilities cannot be less than aggregate amount of permitted non-subordinated eligible liabilities instruments if the subordination discretion as per Article 72b(3) of Reg (v10746_m)Warning
- Own funds and subordinated liabilities must equal the sum of its two parts (v10756_m)Warning
Every MREL and TLAC rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.