The rule in plain words
Common equity tier 1 capital must equal total risk exposure amount times CET1 capital ratio.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
C_01.00: COMMON EQUITY TIER 1 CAPITAL = C_02.00.A: TOTAL RISK EXPOSURE AMOUNT, TREA × C_03.00: CET1 Capital ratio
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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 01.00, C 03.00 and C 02.00 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Capital adequacy - own funds definition (C 01.00)
Row
- 0020COMMON EQUITY TIER 1 CAPITAL
Column
- 0010Amount
Capital adequacy - risk exposure amounts (C 02.00.a)
Row
- 0010TOTAL RISK EXPOSURE AMOUNT
Column
- 0010TREA
Capital adequacy - ratios (C 03.00)
Row
- 0010CET1 Capital ratio
Column
- 0010Amount
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_01.00,r0020,c0010,} = {C_02.00.a,r0010,c0010,} * {C_03.00,r0010,c0010,}Other rules on C 01.00
- Surplus or Deficit of CET1 capital must equal common equity tier 1 capital minus total risk exposure amount times 0.045 (v0219_m)Blocking
- Tier 1 capital must equal total risk exposure amount times T1 capital ratio (v0220_m)Blocking
- Surplus or Deficit of T1 capital must equal tier 1 capital minus total risk exposure amount times 0.06 (v0221_m)Blocking
- Own funds must equal total risk exposure amount times total capital ratio (v0222_m)Blocking
- Surplus or Deficit of total capital must equal own funds minus total risk exposure amount times 0.08 (v0223_m)Blocking
- Common equity tier 1 capital: a matching-values check across capital adequacy: own funds definition and capital adequacy: transitional provisions: Summary (C 05.01, v0191_m)Warning
- Own T2 instruments must equal the sum of its three parts (v0188_m)Warning
- Capital instruments and share premium eligible as T2 capital must equal the sum of its four parts (v0187_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.
