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 internal TLAC column (0020) of M 03.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Internal 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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 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
- 0500Combined buffer requirement (%)
- 0510Of which: capital conservation buffer requirement
- 0520Of which: countercyclical buffer requirement
- 0530Of which: systemic risk buffer requirement
- 0540Of which: Global Systemically Important Institution (G-SII) or Other Systemically Important Institution (O-SII) buffer
Column
- 0020Internal 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_03.00,r0500,c0020,} = {M_03.00,r0510,c0020,} + {M_03.00,r0520,c0020,} + {M_03.00,r0530,c0020,} + {M_03.00,r0540,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 exposure measure (v10783_m)Warning
- Other bailinable liabilities must equal the sum of its three parts (v10785_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
- Other bailinable liabilities cannot be less than other bailinable liabilities governed by third country law (v10786_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 risk exposure amount times total risk exposure amount (v10780_m)Warning
- Other bailinable liabilities governed by third country law cannot be less than containing a write down and conversion clause (v10788_m)Warning
- A check on internal MREL and internal TLAC (ILAC) (v10779_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.