The rule in plain words
(-) amount exceeding the 17.65% threshold must equal (-) amount exceeding the 17.65% threshold related to CET1 instruments of financial sector entities where the institution has a significant i plus (-) amount exceeding the 17.65% threshold related to deferred tax assets arising from temporary differences.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
(-) Amount exceeding the 17.65% threshold = (-) Amount exceeding the 17.65% threshold related to CET1 instruments of financial sector entities where the institution has a significant i + (-) Amount exceeding the 17.65% threshold related to deferred tax assets arising from temporary differences
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 01.00 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 - own funds definition (C 01.00)
Rows
- 0510(-) Amount exceeding the 17.65% threshold
- 0511(-) Amount exceeding the 17.65% threshold related to CET1 instruments of financial sector entities where the institution has a significant i
- 0512(-) Amount exceeding the 17.65% threshold related to deferred tax assets arising from temporary differences
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
(-) amount exceeding the 17.65% threshold must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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_01.00,r0510,c0010,} = {C_01.00,r0511,c0010,} + {C_01.00,r0512,c0010,}Other rules on C 01.00
- Other intangible assets before deduction of deferred tax liabilities cannot be more than of wich: software assets accounted for as intangible assets before deduction of deferred tax liabilities (v11503_m)Warning
- Deferred tax liabilities associated to other intangible assets cannot be less than deferred tax liabilities associated with software assets accounted for as intangible assets (v11504_m)Warning
- Amount must be reported (v6293_m)Warning
- Tier 2 capital: a calculation check across capital adequacy: own funds definition and capital adequacy: Memorandum items (C 04.00, v4816_m)Warning
- Additional tier 1 capital: a calculation check across capital adequacy: own funds definition and capital adequacy: Memorandum items (C 04.00, v4815_m)Warning
- Common equity tier 1 capital: a calculation check across capital adequacy: own funds definition and capital adequacy: Memorandum items (C 04.00, v4814_m)Warning
- SA general credit risk adjustments cannot be more than 0.0125 times risk weighted exposure amounts for calculating the cap to the provision eligible as T2 (v4813_m)Warning
- A conditional check across capital adequacy: Memorandum items and capital adequacy: own funds definition (C 04.00, v4812_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.