The rule in plain words
These three added up cannot be more than liabilities and own funds less excluded liabilities:
- Other bailinable liabilities, minimum requirement for own funds and eligible liabilities (MREL)
- Own funds, minimum requirement for own funds and eligible liabilities (MREL)
- Eligible liabilities items before adjustments, minimum requirement for own funds and eligible liabilities (MREL)
The template it checks
MREL and TLAC key metrics (resolution groups / entities) (KM2) (M 01.00)
Row
- 0250Other bailinable liabilities
Column
- 0010Minimum requirement for own funds and eligible liabilities (MREL)
MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (I) (M 02.00.a)
Rows
- 0020(Eligible) Own funds
- 0070Eligible liabilities items before adjustments
Column
- 0010Minimum requirement for own funds and eligible liabilities (MREL)
Creditor ranking (resolution entities) (TLAC3) (M 06.00)
Column
- 0050Liabilities and own funds less excluded liabilities
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{M_01.00,r0250,c0010,} + {M_02.00.a,r0020,c0010,} + {M_02.00.a,r0070,c0010,} <= sum({M_06.00,,c0050,})Other rules on M 01.00
- Minimum requirement for own funds and eligible liabilities (MREL) cannot be negative (v10833_s)Warning
- Requirement for own funds and eligible liabilities for G-SIIs (TLAC) cannot be negative (v10834_s)Warning
- Own funds and subordinated liabilities must equal the sum of its two parts (v10756_m)Warning
- Own funds and subordinated liabilities times total exposure measure (TEM) must equal own funds plus eligible liabilities subordinated to excluded liabilities (v10755_m)Warning
- Own funds and subordinated liabilities times total risk exposure amount (TREA) must equal own funds plus eligible liabilities subordinated to excluded liabilities (v10754_m)Warning
- Minimum requirement for own funds and eligible liabilities (MREL) must be reported (e10751_e)Warning
- A calculation check on MREL and TLAC key metrics (resolution groups / entities) (KM2) (v10750_m)Warning
- A calculation check on MREL and TLAC key metrics (resolution groups / entities) (KM2) (v10749_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.