The rule in plain words
Additional stricter prudential requirements based on Article 458 of Regulation (EU) No 575/2013 cannot be less than these three added up:
- Requirements for large exposures
- Due to modified risk weights for targeting asset bubbles in the residential and commercial property
- Due to intra financial sector exposures
All the values are in the TREA column (0010) of C 02.00.a.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
TREA: Of which: Additional stricter prudential requirements based on Article 458 of Regulation (EU) No 575/2013 >= Of which: requirements for large exposures + Of which: due to modified risk weights for targeting asset bubbles in the residential and commercial property + Of which: due to intra financial sector exposures
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C 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
Capital adequacy - risk exposure amounts (C 02.00.a)
Rows
- 0710Of which: Additional stricter prudential requirements based on Article 458 of Regulation (EU) No 575/2013
- 0720Of which: requirements for large exposures
- 0730Of which: due to modified risk weights for targeting asset bubbles in the residential and commercial property
- 0740Of which: due to intra financial sector exposures
Column
- 0010TREA
A worked example
The first of its checks, with simple numbers.
Additional stricter prudential requirements based on Article 458 of Regulation (EU) No 575/2013 must then be at least 2,450.
A file that reports 2,450 passes. One that reports 2,350 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. Cells are written as {template, row, column, sheet}.
{C_02.00.a,r0710,c0010,} >= {C_02.00.a,r0720,c0010,} + {C_02.00.a,r0730,c0010,} + {C_02.00.a,r0740,c0010,}Other rules on C 02.00.a
- Other risk exposure amounts cannot be less than the sum of five rows (v0216_m)Warning
- Total risk exposure amount for credit valuation adjustment must equal the sum of its five parts (v0215_m)Warning
- Risk exposure amount for business subject to market risk calculated by entities exclusively applying the simplified standardised approach (S must equal the sum of its five parts (v0213_m)Warning
- IRB approaches when own estimates of LGD and/or conversion factors are used must equal the sum of its ten parts (v0211_m)Warning
- IRB approaches when neither own estimates of LGD nor conversion factors are used must equal the sum of its seven parts (v0210_m)Warning
- SA exposure classes excluding securitisation positions must equal the sum of its 17 parts (v0207_m)Warning
- Risk weighted exposure amounts for credit, counterparty credit and dilution risks and free deliveries must equal the sum of its four parts (v0205_m)Warning
- Total unsettled transactions in the non-trading book, total settlement risk exposure amount must equal settlement or delivery risk in the non-trading book, TREA (v0500_m)Warning
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.