The rule in plain words
Combined buffer requirement (%) must equal these four added up:
- Capital conservation buffer requirement
- Countercyclical buffer requirement
- Systemic risk buffer requirement
- Global Systemically Important institution (G-SII) or other Systemically Important institution (O-SII) buffer
All the values are in the requirement for own funds and eligible liabilities for G-SIIs (TLAC) column (0020) of M 02.00.a.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Requirement for own funds and eligible liabilities for G-SIIs (TLAC): Combined buffer requirement (%) = Of which: capital conservation buffer requirement + Of which: countercyclical buffer requirement + Of which: systemic risk buffer requirement + Of which: Global Systemically Important Institution (G-SII) or Other Systemically Important Institution (O-SII) buffer
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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
- 0410Combined buffer requirement (%)
- 0420Of which: capital conservation buffer requirement
- 0430Of which: countercyclical buffer requirement
- 0440Of which: systemic risk buffer requirement
- 0450Of which: Global Systemically Important Institution (G-SII) or Other Systemically Important Institution (O-SII) buffer
Column
- 0020Requirement for own funds and eligible liabilities for G-SIIs (TLAC)
A worked example
The first of its checks, with simple numbers.
Combined buffer requirement (%) must then be 2,750.
A file that reports 2,750 passes. One that reports 2,850 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,r0410,c0020,} = {M_02.00.a,r0420,c0020,} + {M_02.00.a,r0430,c0020,} + {M_02.00.a,r0440,c0020,} + {M_02.00.a,r0450,c0020,}Other rules on M 02.00.a
- Deductions must equal the sum of its two parts (v10764_m)Warning
- Investments in subordinated eligible liabilities of other institutions (under memorandum items) must equal the sum of its three parts (v10766_m)Warning
- Eligible liabilities not subordinated to excluded liabilities must equal the sum of its three parts (row 0140, v10763_m)Warning
- A check on MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (I), and MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (III) (M 02.00.c, v10767_m)Not run yet
- Eligible liabilities not subordinated to excluded liabilities must equal the sum of its three parts (row 0140, v10762_m)Warning
- A check on MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (I), and MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (III) (M 02.00.c, v10768_m)Not run yet
- Eligible liabilities subordinated to excluded liabilities must equal the sum of its five parts (v10761_m)Warning
- A check on MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (I), and MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (III) (M 02.00.c, v10769_m)Not run yet
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.