The rule in plain words
Eligible own funds must equal these three added up:
- Common equity Tier 1 capital (CET1)
- Eligible additional Tier 1
- Eligible T2
EBA checks it for two columns: internal MREL and internal TLAC. 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.
Internal TLAC: Eligible Own funds = Common Equity Tier 1 capital (CET1) + Eligible Additional Tier 1 + Eligible T2
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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 M 03.00 as reported.
- 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
Internal MREL and internal TLAC (ILAC) (M 03.00)
Rows
- 0210Eligible Own funds
- 0220Common Equity Tier 1 capital (CET1)
- 0230Eligible Additional Tier 1
- 0240Eligible T2
Columns
- 0010Internal MREL
- 0020Internal TLAC
A worked example
The first of its checks, with simple numbers.
Eligible own funds must then be 2,450.
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 writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{M_03.00,r0210,c0020,} = {M_03.00,r0220,c0020,} + {M_03.00,r0230,c0020,} + {M_03.00,r0240,c0020,}The next one:
{M_03.00,r0210,c0010,} = {M_03.00,r0220,c0010,} + {M_03.00,r0230,c0010,} + {M_03.00,r0240,c0010,}Other rules on M 03.00
- Eligible own funds must equal the sum of its three parts (row 0210, v903586_m)Warning
- Internal MREL cannot be negative (v90270_s)Warning
- A conditional check on internal MREL and internal TLAC (ILAC) (v22546_m)Warning
- A conditional check on internal MREL and internal TLAC (ILAC) (v22545_m)Warning
- Each of the six values it checks in internal MREL and internal TLAC (ILAC) cannot be more than zero (v22357_s)Warning
- Own funds and eligible liabilities as a percentage of the total exposure measure cannot be less than permitted guarantees (v22345_m)Warning
- Own funds and eligible liabilities as a percentage of the total risk exposure amount cannot be less than permitted guarantees (v22344_m)Warning
- A lower-limit check on internal MREL and internal TLAC (ILAC) (v22340_m)Warning
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.