The rule in plain words
Eligible liabilities must equal eligible liabilities items before adjustments.
All the values are in the minimum requirement for own funds and eligible liabilities (MREL) column (0010) of M 02.00.a.
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): Eligible liabilities = Eligible liabilities items before adjustments
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 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 02.00 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 capacity and composition (resolution groups / entities) (TLAC1) (I) (M 02.00.a)
Rows
- 0060Eligible liabilities
- 0070Eligible liabilities items before adjustments
Column
- 0010Minimum requirement for own funds and eligible liabilities (MREL)
A worked example
The first of its checks, with simple numbers.
Eligible liabilities items before adjustments must then be 1,200.
A file that reports 1,200 passes. One that reports 1,300 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. Cells are written as {template, row, column, sheet}.
{M_02.00.a,r0060,c0010,} = {M_02.00.a,r0070,c0010,}Other rules on M 02.00.a
- Own funds and eligible liabilities must equal own funds plus eligible liabilities (v10757_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.