The rule in plain words
For non-identified, listed on a trading venue: liabilities excluded from bail-in must equal these six added up:
- Covered deposits
- Secured liabilities - collateralized part
- Client liabilities, if protected in insolvency
- Fiduciary liabilities, if protected in insolvency
- System (operator) and CCP liabilities < 7 days
- Liabilities critical to operational daily functioning
All the values are in the outstanding amount column (0070) of Z 02.00.a.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Outstanding Amount: Liabilities excluded from bail-in = Covered deposits + Secured liabilities - collateralized part + Client liabilities, if protected in insolvency + Fiduciary liabilities, if protected in insolvency + System (operator) and CCP liabilities < 7 days + Liabilities critical to operational daily functioning
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark Z 02.00 as reported.
- 06This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Liability structure (LIAB) (Z 02.00.a)
Rows
- 0100Liabilities excluded from bail-in
- 0110Covered deposits
- 0120Secured liabilities - collateralized part
- 0130Client liabilities, if protected in insolvency
- 0140Fiduciary liabilities, if protected in insolvency
- 0161System (operator) and CCP liabilities < 7 days
- 0180Liabilities critical to operational daily functioning
Column
- 0070Outstanding Amount
A worked example
The first of its checks, with simple numbers.
Liabilities excluded from bail-in must then be 3,000.
A file that reports 3,000 passes. One that reports 3,100 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}.
{Z_02.00.a,r0100,c0070,} = {Z_02.00.a,r0110,c0070,} + {Z_02.00.a,r0120,c0070,} + {Z_02.00.a,r0130,c0070,} + {Z_02.00.a,r0140,c0070,} + {Z_02.00.a,r0161,c0070,} + {Z_02.00.a,r0180,c0070,}Other rules on Z 02.00.a
- Intragroup: liabilities excluded from bail-in must equal the sum of its eight parts (v11254_m)Warning
- Total liabilities and own funds including derivative liabilities must equal the sum of its three parts (v7500_m)Warning
- Other MREL eligible liabilities must equal the sum of its two parts (v6510_m)Blocking
- Subordinated liabilities (not recognised as own funds) must equal the sum of its four parts (v6508_m)Blocking
- Senior non-preferred liabilities must equal the sum of its four parts (v6506_m)Blocking
- Senior unsecured liabilities must equal the sum of its four parts (v6504_m)Blocking
- Structured notes must equal the sum of its four parts (v6502_m)Blocking
- Uncollateralized secured liabilities must equal the sum of its four parts (v6500_m)Blocking
Every RESOL1 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.