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1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Liabilities and own funds less excluded liabilities cannot be less than own funds and eligible liabilities for the purpose of internal MREL (EBA rule v10806_m)

A warning in the loss-absorbing capacity return (MREL and TLAC), on template M 05.00, creditor ranking (entity that is not a resolution entity) (TLAC2).

Check your file against this ruleWhat to do if it fails

The rule in plain words

Liabilities and own funds less excluded liabilities cannot be less than own funds and eligible liabilities for the purpose of internal MREL.

How the Line4 Check report words itShow

Word for word as the report shows it when the rule fails.

Liabilities and own funds less excluded liabilities >= Of which: own funds and eligible liabilities for the purpose of internal MREL

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 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.
  3. 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  4. 04It runs only when your filing indicators mark M 05.00 as reported.
  5. 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

Creditor ranking (entity that is not a resolution entity) (TLAC2) (M 05.00)

Columns

  • 0060Liabilities and own funds less excluded liabilities
  • 0070Of which: own funds and eligible liabilities for the purpose of internal MREL

A worked example

The first of its checks, with simple numbers.

Illustrative values
Liabilities and own funds less excluded liabilities1,200
What the rule then expects

Own funds and eligible liabilities for the purpose of internal MREL can then be at most 1,200.

1,200Passes
1,300Fails

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 writtenShow

EBA's formula. Cells are written as {template, row, column, sheet}.

{M_05.00,,c0060,} >= {M_05.00,,c0070,}

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.