The rule in plain words
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.
EBA checks it for two columns: internal MREL and internal 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.
Internal MREL: Eligible own funds and eligible liabilities = Own funds and eligible liabilities as a percentage of the total exposure measure × Total exposure measure
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 03.00 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
Internal MREL and internal TLAC (ILAC) (M 03.00)
Rows
- 0110Total exposure measure
- 0200Eligible own funds and eligible liabilities
- 0420Own funds and eligible liabilities as a percentage of the total exposure measure
Columns
- 0010Internal MREL
- 0020Internal TLAC
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_03.00,r0200,c0010,} = {M_03.00,r0420,c0010,} * {M_03.00,r0110,c0010,}The next one:
{M_03.00,r0200,c0020,} = {M_03.00,r0420,c0020,} * {M_03.00,r0110,c0020,}Other rules on M 03.00
- Guarantees provided by the resolution entity and permitted by the resolution authority must equal permitted guarantees times total risk exposure amount (v10781_m)Warning
- Guarantees provided by the resolution entity and permitted by the resolution authority must equal permitted guarantees times total exposure measure (v10783_m)Warning
- 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
- Combined buffer requirement must equal the sum of its four parts (v10784_m)Warning
- A check on internal MREL and internal TLAC (ILAC) (v10779_m)Not run yet
- Other bailinable liabilities must equal the sum of its three parts (v10785_m)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
- Other bailinable liabilities cannot be less than other bailinable liabilities governed by third country law (v10786_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.