The rule in plain words
Senior unsecured liabilities >= 1 year cannot be less than senior unsecured liabilities >= 1 year issued by subsidiaries.
All the values are in the amount eligible for MREL / internal MREL column (0010) of M 04.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Senior unsecured liabilities >= 1 year >= Of which: issued by subsidiaries
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 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 04.00 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
Funding structure of eligible liabilities (LIAB MREL) (M 04.00)
Rows
- 0500Senior unsecured liabilities >= 1 year
- 0530Of which: issued by subsidiaries
Column
- 0010Amount eligible for MREL / internal MREL
A worked example
The first of its checks, with simple numbers.
Senior unsecured liabilities >= 1 year issued by subsidiaries can then be at most 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_04.00,r0500,c0010,} >= {M_04.00,r0530,c0010,}Other rules on M 04.00
- Structured notes >= 1 year cannot be less than structured notes >= 1 year issued by subsidiaries (v10799_m)Warning
- Senior non-preferred liabilities >= 1 year cannot be less than senior non-preferred liabilities >= 1 year issued by subsidiaries (v10801_m)Warning
- Uncollateralized secured liabilities >= 1 year cannot be less than uncollateralized secured liabilities >= 1 year issued by subsidiaries (v10798_m)Warning
- Subordinated liabilities (not recognised as own funds) >= 1 year cannot be less than subordinated liabilities >= 1 year issued by subsidiaries (v10802_m)Warning
- Deposits, not covered and not preferential >= 1 year cannot be less than eligible liabilities issued by subsidiaries (v10797_m)Warning
- Other MREL eligible liabilities >= 1 year cannot be less than eligible liabilities issued by subsidiaries (v10803_m)Warning
- Other MREL eligible liabilities >= 1 year cannot be less than the sum of two rows (v10796_m)Warning
- Subordinated liabilities (not recognised as own funds) >= 1 year cannot be less than the sum of two rows (v10795_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.