The rule in plain words
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).
EBA checks it for two columns: minimum requirement for own funds and eligible liabilities (MREL), and requirement for own funds and eligible liabilities for G-SIIs (TLAC). That makes two 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 eligibile liabilities = Own funds and eligible liabilities as a percentage of the total exposure measure × Total exposure measure (TEM)
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark M 01.00 as reported.
- 05This 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
- 0110Total exposure measure (TEM)
- 0200Own funds and eligibile liabilities
- 0320Own funds and eligible liabilities as a percentage of the total exposure measure
Columns
- 0010Minimum requirement for own funds and eligible liabilities (MREL)
- 0020Requirement for own funds and eligible liabilities for G-SIIs (TLAC)
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}.
{M_01.00,r0200,c0010,} = {M_01.00,r0320,c0010,} * {M_01.00,r0110,c0010,}The next one:
{M_01.00,r0200,c0020,} = {M_01.00,r0320,c0020,} * {M_01.00,r0110,c0020,}Other rules on M 01.00
- 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
- A calculation check on MREL and TLAC key metrics (resolution groups / entities) (KM2) (v10749_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
- A calculation check on MREL and TLAC key metrics (resolution groups / entities) (KM2) (v10750_m)Warning
- Own funds and eligible liabilities as a percentage of the total exposure measure cannot be less than own funds and subordinated liabilities (v10745_m)Warning
- Minimum requirement for own funds and eligible liabilities (MREL) must be reported (e10751_e)Warning
- Own funds and eligible liabilities as a percentage of the total risk exposure amount cannot be less than own funds and subordinated liabilities (v10744_m)Warning
- Other bailinable liabilities must equal the sum of its three parts (v10743_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.