The rule in plain words
Other MREL eligible liabilities must equal residual maturity >= 1 year and < 2 years plus residual maturity >= 2 years.
EBA checks it for twelve columns, from outstanding amount (0010) to outstanding amount (0110). That makes twelve 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: Other MREL eligible liabilities = of which: residual maturity >= 1 year and < 2 years + of which: residual maturity >= 2 years
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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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
- 0380Other MREL eligible liabilities
- 0381of which: residual maturity >= 1 year and < 2 years
- 0382of which: residual maturity >= 2 years
Columns
- 0010Outstanding Amount
- 0020Outstanding Amount
- 0030Outstanding Amount
- 0040Outstanding Amount
- 0050Outstanding Amount
- 0055Outstanding Amount
- 0060Outstanding Amount
- 0070Outstanding Amount
- 0080Outstanding Amount
- 0090Outstanding Amount
- 0100Outstanding Amount
- 0110Outstanding Amount
A worked example
The first of its checks, with simple numbers.
Other MREL eligible liabilities must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{Z_02.00.a,r0380,c0020,} = {Z_02.00.a,r0381,c0020,} + {Z_02.00.a,r0382,c0020,}The next five:
{Z_02.00.a,r0380,c0110,} = {Z_02.00.a,r0381,c0110,} + {Z_02.00.a,r0382,c0110,}{Z_02.00.a,r0380,c0050,} = {Z_02.00.a,r0381,c0050,} + {Z_02.00.a,r0382,c0050,}{Z_02.00.a,r0380,c0070,} = {Z_02.00.a,r0381,c0070,} + {Z_02.00.a,r0382,c0070,}{Z_02.00.a,r0380,c0100,} = {Z_02.00.a,r0381,c0100,} + {Z_02.00.a,r0382,c0100,}{Z_02.00.a,r0380,c0055,} = {Z_02.00.a,r0381,c0055,} + {Z_02.00.a,r0382,c0055,}And 6 more, the same formula for the other cells it covers.
Other rules on Z 02.00.a
- 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
- Deposits, not covered and not preferential must equal the sum of its four parts (v6498_m)Blocking
- Deposits, not covered but preferential must equal the sum of its four parts (v6496_m)Blocking
- Liabilities not excluded from bail-in must equal the sum of its eleven parts (v6494_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.