The rule in plain words

Holdings of T2 capital of financial sector entities where the institution does not have a significant investment, net of short positions must equal these three added up:

Direct holdings of T2 capital of financial sector entities where the institution does not have a significant investment
Indirect holdings of T2 capital of financial sector entities where the institution does not have a significant investment
Synthetic holdings of T2 capital of financial sector entities where the institution does not have a significant investment

All the values are in the amount column (0010) of C 04.00.

How the Line4 Check report words itShow

Word for word as the report shows it when the rule fails.

Holdings of T2 capital of financial sector entities where the institution does not have a significant investment, net of short positions = Direct holdings of T2 capital of financial sector entities where the institution does not have a significant investment + Indirect holdings of T2 capital of financial sector entities where the institution does not have a significant investment + Synthetic holdings of T2 capital of financial sector entities where the institution does not have a significant investment

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03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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

0370Holdings of T2 capital of financial sector entities where the institution does not have a significant investment, net of short positions
0380Direct holdings of T2 capital of financial sector entities where the institution does not have a significant investment
0410Indirect holdings of T2 capital of financial sector entities where the institution does not have a significant investment
0431Synthetic holdings of T2 capital of financial sector entities where the institution does not have a significant investment

Column

0010Amount

A worked example

The first of its checks, with simple numbers.

Illustrative values

Direct holdings of T2 capital of financial sector entities where the institution does not have a significant investment1,200

Indirect holdings of T2 capital of financial sector entities where the institution does not have a significant investment800

Synthetic holdings of T2 capital of financial sector entities where the institution does not have a significant investment450

Together2,450

What the rule then expects

Holdings of T2 capital of financial sector entities where the institution does not have a significant investment, net of short positions must then be 2,450.

2,450Passes

2,550Fails

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 writtenShow

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

{C_04.00,r0370,c0010,} = {C_04.00,r0380,c0010,} + {C_04.00,r0410,c0010,} + {C_04.00,r0431,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.

Holdings of T2 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 (EBA rule v0235_m)

The rule in plain words

What to do if your filing fails it

The cells it reads

A worked example

Other rules on C 04.00