The rule in plain words
These three added up cannot be more than liabilities and own funds less excluded liabilities:
- Eligible own funds, internal MREL
- Eligible liabilities and guarantees, internal MREL
- Other bailinable liabilities, internal MREL
The template it checks
Internal MREL and internal TLAC (ILAC) (M 03.00)
Rows
- 0210Eligible Own funds
- 0250Eligible liabilities and guarantees
- 0550Other bailinable liabilities
Column
- 0010Internal MREL
Creditor ranking (entity that is not a resolution entity) (TLAC2) (M 05.00)
Column
- 0060Liabilities and own funds less excluded liabilities
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,} + {M_03.00,r0550,c0010,} <= sum({M_05.00,,c0060,})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
- Eligible liabilities (excluding guarantees) must equal eligible liabilities (v10815_m)Warning
- 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.