The rule in plain words
For liabilities excluded from bail-in, general governments & central banks: outstanding amount cannot be negative.
EBA checks it for 55 rows, from liabilities excluded from bail-in (0100) to (part of) subordinated liabilities recognised as own funds (0531). That makes 55 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: Client liabilities, if protected in insolvency >= 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 02.00 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
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
- 0190Tax and social security authorities liabilities, if preferred
- 0200DGS liabilities
- 0300Liabilities not excluded from bail-in
- 0310Deposits, not covered but preferential
- 0311of which: residual maturity <= 1 month
- 0312of which: residual maturity > 1 month < 1 year
- 0313of which: residual maturity >= 1 year and < 2 years
- 0314of which: residual maturity >= 2 years
- 0320Deposits, not covered and not preferential
- 0321of which: residual maturity <= 1 month
- 0322of which: residual maturity > 1 month < 1 year
- 0323of which: residual maturity >= 1 year and < 2 years
- 0324of which: residual maturity >= 2 years
- 0334Sum of net liability positions taking into account prudential netting rules
- 0340Uncollateralized secured liabilities
- 0341of which: residual maturity <= 1 month
- 0342of which: residual maturity > 1 month < 1 year
- 0343of which: residual maturity >= 1 year and < 2 years
- 0344of which: residual maturity >= 2 years
- 0350Structured notes
- 0351of which: residual maturity <= 1 month
- 0352of which: residual maturity > 1 month < 1 year
- 0353of which: residual maturity >= 1 year and < 2 years
- 0354of which: residual maturity >= 2 years
- 0360Senior unsecured liabilities
- 0361of which: residual maturity <= 1 month
- 0362of which: residual maturity > 1 month < 1 year
- 0363of which: residual maturity >= 1 year and < 2 years
- 0364of which: residual maturity >= 2 years
- 0365Senior non-preferred liabilities
- 0366of which: residual maturity <= 1 month
- 0367of which: residual maturity > 1 month < 1 year
- 0368of which: residual maturity >= 1 year and < 2 years
And 15 more.
Column
- 0060Outstanding Amount
A worked example
The first of its checks, with simple numbers.
Client liabilities, if protected in insolvency, outstanding amount 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_02.00.a,r0130,c0060,} >= 0The next five:
{Z_02.00.a,r0360,c0060,} >= 0{Z_02.00.a,r0321,c0060,} >= 0{Z_02.00.a,r0350,c0060,} >= 0{Z_02.00.a,r0362,c0060,} >= 0{Z_02.00.a,r0365,c0060,} >= 0And 49 more, the same formula for the other cells it covers.
Other rules on Z 02.00.a
- None of the 106 values it checks in liability structure (LIAB) can be negative (v90285_s)Warning
- Structured notes: outstanding amount cannot be negative (v90282_s)Warning
- Liabilities excluded from bail-in, liabilities governed by the law of a third country, excluding intragroup: outstanding amount cannot be negative (v90287_s)Warning
- Liabilities excluded from bail-in, households: outstanding amount cannot be negative (v90280_s)Warning
- Non-identified, listed on a trading venue: liabilities excluded from bail-in must equal the sum of its six parts (v11901_m)Blocking
- 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
Every RESOL1 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.