The rule in plain words
Own funds and subordinated liabilities (under own funds and eligibile liabilities) must equal own funds and subordinated liabilities (under own funds and eligible liabilities as a percentage of the total risk exposure amount) times total risk exposure amount (TREA).
All the values are in the minimum requirement for own funds and eligible liabilities (MREL) column (0010) of M 01.00.
The headline gives only the kind of check and the template, because the rule is too long to say in a headline. The plain words above say all of it.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Minimum requirement for own funds and eligible liabilities (MREL): Own funds and eligibile liabilities, of which: own funds and subordinated liabilities = Own funds and eligible liabilities as a percentage of the total risk exposure amount, of which: own funds and subordinated liabilities × Total risk exposure amount (TREA)
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
- 0100Total risk exposure amount (TREA)
- 0210Of which: own funds and subordinated liabilities
- 0310Of which: own funds and subordinated liabilities
Column
- 0010Minimum requirement for own funds and eligible liabilities (MREL)
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{M_01.00,r0210,c0010,} = {M_01.00,r0310,c0010,} * {M_01.00,r0100,c0010,}Other rules on M 01.00
- 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
- A calculation check on MREL and TLAC key metrics (resolution groups / entities) (KM2) (v10750_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
- Minimum requirement for own funds and eligible liabilities (MREL) must be reported (e10751_e)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 eligible liabilities as a percentage of the total exposure measure cannot be less than own funds and subordinated liabilities (v10745_m)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
- 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
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.