The rule in plain words
Own funds and eligible liabilities as a percentage of the total risk exposure amount cannot be less than permitted guarantees.
All the values are in the internal MREL column (0010) of M 03.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Internal MREL: Own funds and eligible liabilities as a percentage of the total risk exposure amount >= Of which permitted guarantees
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 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 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
- 0400Own funds and eligible liabilities as a percentage of the total risk exposure amount
- 0410Of which permitted guarantees
Column
- 0010Internal MREL
A worked example
The first of its checks, with simple numbers.
Permitted guarantees can then be at most 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,r0400,c0010,} >= {M_03.00,r0410,c0010,}Other rules on M 03.00
- Own funds and eligible liabilities as a percentage of the total exposure measure cannot be less than permitted guarantees (v22345_m)Warning
- A lower-limit check on internal MREL and internal TLAC (ILAC) (v22340_m)Warning
- Each of the six values it checks in internal MREL and internal TLAC (ILAC) cannot be more than zero (v22357_s)Warning
- A conditional check on internal MREL and internal TLAC (ILAC) (v22545_m)Warning
- A conditional check on internal MREL and internal TLAC (ILAC) (v22546_m)Warning
- Internal TLAC cannot be negative (v10840_s)Warning
- The sum of three rows cannot be more than liabilities and own funds less excluded liabilities (v10817_m)Not run yet
- 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
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.