The rule in plain words
Own funds and eligible liabilities must equal own funds plus eligible liabilities.
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.
Requirement for own funds and eligible liabilities for G-SIIs (TLAC): Own funds and eligible liabilities = (Eligible) Own funds + Eligible liabilities
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark M 02.00 as reported.
- 06This 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 capacity and composition (resolution groups / entities) (TLAC1) (I) (M 02.00.a)
Rows
- 0010Own funds and eligible liabilities
- 0020(Eligible) Own funds
- 0060Eligible liabilities
Columns
- 0010Minimum requirement for own funds and eligible liabilities (MREL)
- 0020Requirement for own funds and eligible liabilities for G-SIIs (TLAC)
A worked example
The first of its checks, with simple numbers.
Own funds and eligible liabilities must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
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_02.00.a,r0010,c0020,} = {M_02.00.a,r0020,c0020,} + {M_02.00.a,r0060,c0020,}The next one:
{M_02.00.a,r0010,c0010,} = {M_02.00.a,r0020,c0010,} + {M_02.00.a,r0060,c0010,}Other rules on M 02.00.a
- Eligible liabilities must equal eligible liabilities items before adjustments (v10758_m)Warning
- Eligible liabilities must equal the sum of its three parts (v10759_m)Warning
- Eligible liabilities items before adjustments cannot be less than eligible liabilities considered as structurally subordinated (v10760_m)Warning
- Eligible liabilities subordinated to excluded liabilities must equal the sum of its five parts (v10761_m)Warning
- Eligible liabilities not subordinated to excluded liabilities must equal the sum of its three parts (row 0140, v10762_m)Warning
- Eligible liabilities not subordinated to excluded liabilities must equal the sum of its three parts (row 0140, v10763_m)Warning
- Deductions must equal the sum of its two parts (v10764_m)Warning
- Combined buffer requirement must equal the sum of its four parts (v10765_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.