The rule in plain words
Eligible liabilities (excluding guarantees) must equal eligible liabilities.
All the values are in the internal MREL column (0010).
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
M_03.00: Eligible liabilities (excluding guarantees), Internal MREL = M_04.00: Eligible liabilities
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 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 03.00 and 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
Internal MREL and internal TLAC (ILAC) (M 03.00)
Row
- 0260Eligible liabilities (excluding guarantees)
Column
- 0010Internal MREL
Funding structure of eligible liabilities (LIAB MREL) (M 04.00)
Row
- 0100Eligible liabilities
Column
- 0010Amount eligible for MREL / internal MREL
A worked example
The first of its checks, with simple numbers.
Eligible liabilities must then be 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_03.00,r0260,c0010,} = {M_04.00,r0100,c0010,}Other rules on M 03.00
- Eligible own funds, internal MREL plus eligible liabilities and guarantees, internal MREL cannot be more than own funds and eligible liabilities for the purpose of internal MREL (all sheets added up) (v10816_m)Warning
- The sum of three rows cannot be more than liabilities and own funds less excluded liabilities (v10817_m)Not run yet
- Internal TLAC cannot be negative (v10840_s)Warning
- Other bailinable liabilities governed by third country law cannot be less than containing a write down and conversion clause (v10788_m)Warning
- Other bailinable liabilities cannot be less than other bailinable liabilities governed by third country law (v10786_m)Warning
- Other bailinable liabilities must equal the sum of its three parts (v10785_m)Warning
- Combined buffer requirement must equal the sum of its four parts (v10784_m)Warning
- Guarantees provided by the resolution entity and permitted by the resolution authority must equal permitted guarantees times total exposure measure (v10783_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.