The rule in plain words
Own funds must equal total risk exposure amount times total capital ratio.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
C_01.00: OWN FUNDS = C_02.00.A: TOTAL RISK EXPOSURE AMOUNT, TREA × C_03.00: Total 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
- 0010OWN FUNDS
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
- 0050Total capital ratio
Column
- 0010Amount
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_01.00,r0010,c0010,} = {C_02.00.a,r0010,c0010,} * {C_03.00,r0050,c0010,}Other rules on C 01.00
- Surplus or Deficit of T1 capital must equal tier 1 capital minus total risk exposure amount times 0.06 (v0221_m)Blocking
- Surplus or Deficit of total capital must equal own funds minus total risk exposure amount times 0.08 (v0223_m)Blocking
- Tier 1 capital must equal total risk exposure amount times T1 capital ratio (v0220_m)Blocking
- Surplus or Deficit of CET1 capital must equal common equity tier 1 capital minus total risk exposure amount times 0.045 (v0219_m)Blocking
- Common equity tier 1 capital must equal total risk exposure amount times CET1 capital ratio (v0218_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.