The rule in plain words
Eligible own funds and eligible liabilities must equal eligible own funds plus eligible liabilities and guarantees.
All the values are in the internal MREL column (0010) of M 03.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Internal MREL: Eligible own funds and eligible liabilities = Eligible Own funds + Eligible liabilities and guarantees
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 03.00 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
Internal MREL and internal TLAC (ILAC) (M 03.00)
Rows
- 0200Eligible own funds and eligible liabilities
- 0210Eligible Own funds
- 0250Eligible liabilities and guarantees
Column
- 0010Internal MREL
A worked example
The first of its checks, with simple numbers.
Eligible 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. Cells are written as {template, row, column, sheet}.
{M_03.00,r0200,c0010,} = {M_03.00,r0210,c0010,} + {M_03.00,r0250,c0010,}Other rules on M 03.00
- Eligible own funds and eligible liabilities must equal the sum of its two parts (v10774_m)Warning
- Eligible liabilities and guarantees must equal the sum of its five parts (v10776_m)Warning
- Internal MREL must be reported (e10773_e)Warning
- If guarantees provided by the resolution entity and permitted by the resolution authority is reported, memorandum item: collateralised part of the guarantee must be reported (v10778_m)Warning
- A check on internal MREL and internal TLAC (ILAC) (v10779_m)Not run yet
- Eligible own funds and eligible liabilities must equal own funds and eligible liabilities as a percentage of the total risk exposure amount times total risk exposure amount (v10780_m)Warning
- Guarantees provided by the resolution entity and permitted by the resolution authority must equal permitted guarantees times total risk exposure amount (v10781_m)Warning
- Eligible own funds and eligible liabilities must equal own funds and eligible liabilities as a percentage of the total exposure measure times total exposure measure (v10782_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.