Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Adjustments to CET1 due to prudential filters must equal the sum of its five parts (EBA rule v0177_m)

A warning in the own funds and capital requirements return (COREP own funds), on template C 01.00, capital adequacy - own funds definition.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Adjustments to CET1 due to prudential filters must equal these five added up:

  • (-) increases in equity resulting from securitised assets
  • Cash flow hedge reserve
  • Cumulative gains and losses due to changes in own credit risk on fair valued liabilities
  • Fair value gains and losses arising from the institution's own credit risk related to derivative liabilities
  • (-) value adjustments due to the requirements for prudent valuation

All the values are in the amount column (0010) of C 01.00.

How the Line4 Check report words itShow

Word for word as the report shows it when the rule fails.

Adjustments to CET1 due to prudential filters = (-) Increases in equity resulting from securitised assets + Cash flow hedge reserve + Cumulative gains and losses due to changes in own credit risk on fair valued liabilities + Fair value gains and losses arising from the institution's own credit risk related to derivative liabilities + (-) Value adjustments due to the requirements for prudent valuation

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  3. 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 C 01.00 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

Capital adequacy - own funds definition (C 01.00)

Rows

  • 0250Adjustments to CET1 due to prudential filters
  • 0260(-) Increases in equity resulting from securitised assets
  • 0270Cash flow hedge reserve
  • 0280Cumulative gains and losses due to changes in own credit risk on fair valued liabilities
  • 0285Fair value gains and losses arising from the institution's own credit risk related to derivative liabilities
  • 0290(-) Value adjustments due to the requirements for prudent valuation

Column

  • 0010Amount

A worked example

The first of its checks, with simple numbers.

Illustrative values
(-) increases in equity resulting from securitised assets1,200
Cash flow hedge reserve800
Cumulative gains and losses due to changes in own credit risk on fair valued liabilities450
Fair value gains and losses arising from the institution's own credit risk related to derivative liabilities300
(-) value adjustments due to the requirements for prudent valuation150
Together2,900
What the rule then expects

Adjustments to CET1 due to prudential filters must then be 2,900.

2,900Passes
3,000Fails

A file that reports 2,900 passes. One that reports 3,000 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. Cells are written as {template, row, column, sheet}.

{C_01.00,r0250,c0010,} = {C_01.00,r0260,c0010,} + {C_01.00,r0270,c0010,} + {C_01.00,r0280,c0010,} + {C_01.00,r0285,c0010,} + {C_01.00,r0290,c0010,}

Every COREP own funds rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.