The rule in plain words
For non-financial corporations (non-SMEs): liabilities excluded from bail-in must equal these seven 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
- DGS liabilities
EBA checks it for two columns: outstanding amount (0020) and outstanding amount (0030). That makes two checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
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 + DGS liabilities
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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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
- 0200DGS liabilities
Columns
- 0020Outstanding Amount
- 0030Outstanding Amount
A worked example
The first of its checks, with simple numbers.
Liabilities excluded from bail-in must then be 3,060.
A file that reports 3,060 passes. One that reports 3,160 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{Z_02.00.a,r0100,c0030,} = {Z_02.00.a,r0110,c0030,} + {Z_02.00.a,r0120,c0030,} + {Z_02.00.a,r0130,c0030,} + {Z_02.00.a,r0140,c0030,} + {Z_02.00.a,r0161,c0030,} + {Z_02.00.a,r0180,c0030,} + {Z_02.00.a,r0200,c0030,}The next one:
{Z_02.00.a,r0100,c0020,} = {Z_02.00.a,r0110,c0020,} + {Z_02.00.a,r0120,c0020,} + {Z_02.00.a,r0130,c0020,} + {Z_02.00.a,r0140,c0020,} + {Z_02.00.a,r0161,c0020,} + {Z_02.00.a,r0180,c0020,} + {Z_02.00.a,r0200,c0020,}Other rules on Z 02.00.a
- Households: liabilities excluded from bail-in must equal the sum of its seven parts (v6480_m)Warning
- Credit institutions: liabilities excluded from bail-in must equal the sum of its eight parts (v6484_m)Blocking
- Outstanding amount: total must equal general governments & central banks (v6478_m)Blocking
- Liabilities excluded from bail-in must equal the sum of its nine parts (v6486_m)Blocking
- Outstanding amount, total must equal outstanding amount, households (v6477_m)Blocking
- Outstanding amount: total must equal credit institutions plus other financial corporations (v6476_m)Blocking
- General governments & central banks: liabilities excluded from bail-in must equal the sum of its eight parts (v6488_m)Blocking
- Outstanding amount, total must equal the sum of its seven parts (row 0110, v6475_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.