The rule in plain words
Total credit risk adjustments, additional value adjustments and other own funds reductions eligible for inclusion in the calculation of the must equal these three added up:
- General credit risk adjustments
- Specific credit risk adjustments
- Additional value adjustments and other own funds reductions
All the values are in the amount column (0010) of C 04.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Total credit risk adjustments, additional value adjustments and other own funds reductions eligible for inclusion in the calculation of the = General credit risk adjustments + Specific credit risk adjustments + Additional value adjustments and other own funds reductions
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark C 04.00 as reported.
- 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 - Memorandum items (C 04.00)
Rows
- 0110Total credit risk adjustments, additional value adjustments and other own funds reductions eligible for inclusion in the calculation of the
- 0120General credit risk adjustments
- 0130Specific credit risk adjustments
- 0131Additional value adjustments and other own funds reductions
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
Total credit risk adjustments, additional value adjustments and other own funds reductions eligible for inclusion in the calculation of the must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 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_04.00,r0110,c0010,} = {C_04.00,r0120,c0010,} + {C_04.00,r0130,c0010,} + {C_04.00,r0131,c0010,}Other rules on C 04.00
- A balancing check on capital adequacy: Memorandum items (row 0100, v0225_m)Warning
- Holdings of CET1 capital of financial sector entities where the institution does not have a significant investment, net of short positions must equal the sum of its three parts (v0227_m)Warning
- Total deferred tax liabilities must equal the sum of its two parts (v0224_m)Warning
- Direct holdings of CET1 capital of financial sector entities where the institution does not have a significant investment must equal the sum of its two parts (v0228_m)Warning
- Indirect holdings of CET1 capital of financial sector entities where the institution does not have a significant investment must equal the sum of its two parts (v0229_m)Warning
- Synthetic holdings of CET1 capital of financial sector entities where the institution does not have a significant investment must equal the sum of its two parts (v0230_m)Warning
- Holdings of AT1 capital of financial sector entities where the institution does not have a significant investment, net of short positions must equal the sum of its three parts (v0231_m)Warning
- Direct holdings of AT1 capital of financial sector entities where the institution does not have a significant investment must equal the sum of its two parts (v0232_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.