The rule in plain words
Other transitional adjustments must equal these three added up:
- Unrealised gains and losses from certain debt exposures to central governments, regional governments, local authorities and PSEs
- Deductions
- Additional filters and deductions
All the values are in the adjustments to CET1 column (0010) of C 05.01.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Adjustments to CET1: OTHER TRANSITIONAL ADJUSTMENTS = Unrealised gains and losses from certain debt exposures to central governments, regional governments, local authorities and PSEs + Deductions + Additional filters and deductions
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 05.01 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 - transitional provisions: Summary (C 05.01)
Rows
- 0100OTHER TRANSITIONAL ADJUSTMENTS
- 0111Unrealised gains and losses from certain debt exposures to central governments, regional governments, local authorities and PSEs
- 0140Deductions
- 0430Additional filters and deductions
Column
- 0010Adjustments to CET1
A worked example
The first of its checks, with simple numbers.
Other transitional adjustments 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_05.01,r0100,c0010,} = {C_05.01,r0111,c0010,} + {C_05.01,r0140,c0010,} + {C_05.01,r0430,c0010,}Other rules on C 05.01
- Deductions must equal the sum of its four parts (v0266_m)Warning
- Deductions must equal the sum of its three parts (v0269_m)Warning
- Other transitional adjustments must equal additional filters and deductions (row 0100, v0256_m)Warning
- Other transitional adjustments must equal additional filters and deductions (row 0100, v0255_m)Warning
- Instruments not constituting state aid, adjustments to CET1 must equal instruments that qualified for Article 57, point (a), total grandfathered amount (v0274_m)Warning
- Minority interests and equivalents must equal the sum of its two parts (v0253_m)Warning
- A matching-values check across capital adequacy: transitional provisions: Summary and capital adequacy (C 05.02, row 0060, v0275_m)Warning
- A matching-values check across capital adequacy: transitional provisions: Summary and capital adequacy (C 05.02, row 0060, v0276_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.