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1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Own funds must equal the sum of its three parts (M 02.00.a, row 0020, EBA rule v903588_m)

A warning in the loss-absorbing capacity return (MREL and TLAC), on template M 02.00.a, mREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (I).

Check your file against this ruleWhat to do if it fails

The rule in plain words

Own funds must equal these three added up:

  • Common equity Tier 1 capital
  • Additional Tier 1 capital
  • T2 capital

EBA checks it for two columns: minimum requirement for own funds and eligible liabilities (MREL), and requirement for own funds and eligible liabilities for G-SIIs (TLAC). That makes two checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

Requirement for own funds and eligible liabilities for G-SIIs (TLAC): (Eligible) Own funds = Common Equity Tier 1 capital + (Eligible) Additional Tier 1 capital + (Eligible) T2 capital

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark M 02.00 as reported.
  6. 06This 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

MREL and TLAC capacity and composition (resolution groups / entities) (TLAC1) (I) (M 02.00.a)

Rows

  • 0020(Eligible) Own funds
  • 0030Common Equity Tier 1 capital
  • 0040(Eligible) Additional Tier 1 capital
  • 0050(Eligible) T2 capital

Columns

  • 0010Minimum requirement for own funds and eligible liabilities (MREL)
  • 0020Requirement for own funds and eligible liabilities for G-SIIs (TLAC)

A worked example

The first of its checks, with simple numbers.

Illustrative values
Common equity Tier 1 capital1,200
additional Tier 1 capital800
T2 capital450
Together2,450
What the rule then expects

Own funds must then be 2,450.

2,450Passes
2,550Fails

A file that reports 2,450 passes. One that reports 2,550 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{M_02.00.a,r0020,c0020,} = {M_02.00.a,r0030,c0020,} + {M_02.00.a,r0040,c0020,} + {M_02.00.a,r0050,c0020,}

The next one:

{M_02.00.a,r0020,c0010,} = {M_02.00.a,r0030,c0010,} + {M_02.00.a,r0040,c0010,} + {M_02.00.a,r0050,c0010,}

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.