Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Tier 2 capital must equal the sum of its 14 parts (EBA rule v0186_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

Tier 2 capital must equal these 14 added up:

  • Capital instruments and share premium eligible as T2 capital
  • Transitional adjustments due to grandfathered T2 capital instruments
  • Instruments issued by subsidiaries that are given recognition in T2 capital
  • Transitional adjustments due to additional recognition in T2 capital of instruments issued by subsidiaries
  • IRB excess of provisions over expected losses eligible
  • SA general credit risk adjustments
  • (-) reciprocal cross holdings in T2 capital
  • (-) T2 instruments of financial sector entities where the institution does not have a significant investment
  • (-) T2 instruments of financial sector entities where the institution has a significant investment
  • (-) excess of deductions from eligible liabilities over eligible liabilities
  • Other transitional adjustments to T2 capital
  • Excess of deduction from T2 items over T2 capital (deducted in AT1)
  • (-) additional deductions of T2 capital due to Article 3 of Regulation (EU) No 575/2013
  • T2 capital elements or deductions - other

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.

TIER 2 CAPITAL = Capital instruments and share premium eligible as T2 Capital + Transitional adjustments due to grandfathered T2 Capital instruments + Instruments issued by subsidiaries that are given recognition in T2 Capital + Transitional adjustments due to additional recognition in T2 Capital of instruments issued by subsidiaries + IRB Excess of provisions over expected losses eligible + SA General credit risk adjustments + (-) Reciprocal cross holdings in T2 Capital + (-) T2 instruments of financial sector entities where the institution does not have a significant investment + (-) T2 instruments of financial sector entities where the institution has a significant investment + (-) Excess of deductions from eligible liabilities over eligible liabilities + Other transitional adjustments to T2 Capital + Excess of deduction from T2 items over T2 Capital (deducted in AT1) + (-) Additional deductions of T2 Capital due to Article 3 of Regulation (EU) No 575/2013 + T2 capital elements or deductions - other

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

  • 0750TIER 2 CAPITAL
  • 0760Capital instruments and share premium eligible as T2 Capital
  • 0880Transitional adjustments due to grandfathered T2 Capital instruments
  • 0890Instruments issued by subsidiaries that are given recognition in T2 Capital
  • 0900Transitional adjustments due to additional recognition in T2 Capital of instruments issued by subsidiaries
  • 0910IRB Excess of provisions over expected losses eligible
  • 0920SA General credit risk adjustments
  • 0930(-) Reciprocal cross holdings in T2 Capital
  • 0940(-) T2 instruments of financial sector entities where the institution does not have a significant investment
  • 0950(-) T2 instruments of financial sector entities where the institution has a significant investment
  • 0955(-) Excess of deductions from eligible liabilities over eligible liabilities
  • 0960Other transitional adjustments to T2 Capital
  • 0970Excess of deduction from T2 items over T2 Capital (deducted in AT1)
  • 0974(-) Additional deductions of T2 Capital due to Article 3 of Regulation (EU) No 575/2013
  • 0978T2 capital elements or deductions - other

Column

  • 0010Amount
Show the rule as writtenShow

EBA's formula. Cells are written as {template, row, column, sheet}.

{C_01.00,r0750,c0010,} = {C_01.00,r0760,c0010,} + {C_01.00,r0880,c0010,} + {C_01.00,r0890,c0010,} + {C_01.00,r0900,c0010,} + {C_01.00,r0910,c0010,} + {C_01.00,r0920,c0010,} + {C_01.00,r0930,c0010,} + {C_01.00,r0940,c0010,} + {C_01.00,r0950,c0010,} + {C_01.00,r0955,c0010,} + {C_01.00,r0960,c0010,} + {C_01.00,r0970,c0010,} + {C_01.00,r0974,c0010,} + {C_01.00,r0978,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.