Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Own funds and eligible liabilities for the purpose of internal MREL must equal the sum of its five parts (EBA rule v10807_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

Own funds and eligible liabilities for the purpose of internal MREL must equal these five added up:

  • ≥ 1 year < 2 years
  • ≥ 2 years < 5 years
  • ≥ 5 years < 10 years
  • ≥ 10 years
  • Perpetual securities
How the Line4 Check report words itShow

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

Of which: own funds and eligible liabilities for the purpose of internal MREL = ≥ 1 year < 2 years + ≥ 2 years < 5 years + ≥ 5 years < 10 years + ≥ 10 years + Of which: perpetual securities

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark M 05.00 as reported.
  6. 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

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

Columns

  • 0070Of which: own funds and eligible liabilities for the purpose of internal MREL
  • 0080≥ 1 year < 2 years
  • 0090≥ 2 years < 5 years
  • 0100≥ 5 years < 10 years
  • 0110≥ 10 years
  • 0120Of which: perpetual securities

A worked example

The first of its checks, with simple numbers.

Illustrative values
≥ 1 year < 2 years1,200
≥ 2 years < 5 years800
≥ 5 years < 10 years450
≥ 10 years300
perpetual securities150
Together2,900
What the rule then expects

Own funds and eligible liabilities for the purpose of internal MREL must then be 2,900.

2,900Passes
3,000Fails

A file that reports 2,900 passes. One that reports 3,000 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,,c0070,} = {M_05.00,,c0080,} + {M_05.00,,c0090,} + {M_05.00,,c0100,} + {M_05.00,,c0110,} + {M_05.00,,c0120,}

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.