The rule in plain words
For information on the contribution of entities to solvency of the group: total risk exposure amount must equal these four added up:
- Credit; counterparty credit; dilution risks, free deliveries and settlement or delivery risk
- Market risks
- Operational risk
- Other risk exposure amounts
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Total risk exposure amount = Credit; counterparty credit; dilution risks, free deliveries and settlement/delivery risk + Market risks + Operational risk + Other risk exposure amounts
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- 03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.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 06.02 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
Group Solvency (C 06.02)
Columns
- 0250Total risk exposure amount
- 0260Credit; counterparty credit; dilution risks, free deliveries and settlement/delivery risk
- 0270Market risks
- 0280Operational risk
- 0290Other risk exposure amounts
A worked example
The first of its checks, with simple numbers.
Total risk exposure amount must then be 2,750.
A file that reports 2,750 passes. One that reports 2,850 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_06.02,,c0250,} = {C_06.02,,c0260,} + {C_06.02,,c0270,} + {C_06.02,,c0280,} + {C_06.02,,c0290,}Other rules on C 06.02
- Qualifying own funds included in consolidated own funds must equal the sum of its two parts (v0288_m)Warning
- Information on entities subject to own funds requirements: total risk exposure amount must equal the sum of its four parts (v0293_m)Warning
- Own funds must equal the sum of its three parts (v0149_h)Warning
- Total tier 1 capital must equal the sum of its two parts (v0147_h)Warning
- Qualifying tier 1 instruments included in consolidated tier 1 capital must equal the sum of its two parts (v1634_m)Warning
- Combined buffer requirements must equal a sum of five terms (v6289_m)Warning
- If minority interests included in consolidated common equity tier 1 capital is reported, common equity tier 1 must be reported (v8707_m)Warning
- If qualifying tier 1 instruments included in consolidated additional tier 1 capital is reported, additional tier 1 must be reported (v8708_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.