The rule in plain words
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).
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
M_03.00: Eligible Own funds, Internal MREL + M_03.00: Eligible liabilities and guarantees, Internal MREL <= M_05.00: Of which: own funds and eligible liabilities for the purpose of internal MREL (all sheets added up)
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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 05.00 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)
Rows
- 0210Eligible Own funds
- 0250Eligible liabilities and guarantees
Column
- 0010Internal MREL
Creditor ranking (entity that is not a resolution entity) (TLAC2) (M 05.00)
Column
- 0070Of which: own funds and eligible liabilities for the purpose of internal MREL
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{M_03.00,r0210,c0010,} + {M_03.00,r0250,c0010,} <= sum({M_05.00,,c0070,})Other rules on M 03.00
- Eligible liabilities (excluding guarantees) must equal eligible liabilities (v10815_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.