The rule in plain words
None of the values it checks in intragroup financial interconnections (IFC) can be negative.
EBA checks it for three columns: outstanding amount, outstanding amount issued under 3rd country law and MREL eligible. That makes three 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.
of which MREL eligible: of which MREL eligible >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark Z 04.00 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Intragroup financial interconnections (IFC) (Z 04.00)
Columns
- 0060Outstanding amount
- 0070of which issued under 3rd country law
- 0080of which MREL eligible
A worked example
The first of its checks, with simple numbers.
MREL eligible must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
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_04.00,,c0080,} >= 0The next two:
{Z_04.00,,c0060,} >= 0{Z_04.00,,c0070,} >= 0Checks like this one, run at the point of submission, are the first step to real-time supervision.