Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Instruments issued before 27 June 2019 that do not meet the eligibility criteria related to write-down and conversion powers pursuant to Art cannot be more than the sum of three rows (EBA rule v09739_m)

A warning in the own funds and capital requirements return (COREP own funds), on template C 05.01, capital adequacy - transitional provisions: Summary.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Instruments issued before 27 June 2019 that do not meet the eligibility criteria related to write-down and conversion powers pursuant to Art cannot be more than these three added up:

  • Instruments without legally or contractually mandatory write-down or conversion upon exercise of powers in accordance with Article
  • Instruments governed by third-country law without effective and enforceable exercise of powers in accordance with Article 59 of Di
  • Instruments subject to set-off or netting arrangements

EBA checks it for two columns: adjustments to AT1 and adjustments to T2. That makes two checks. A failure names the one that failed.

How the Line4 Check report words itShow

The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.

Adjustments to AT1: Instruments issued before 27 June 2019 that do not meet the eligibility criteria related to write-down and conversion powers pursuant to Art <= of which: Instruments without legally or contractually mandatory write-down or conversion upon exercise of powers in accordance with Article + of which: Instruments governed by third-country law without effective and enforceable exercise of powers in accordance with Article 59 of Di + of which: Instruments subject to set-off or netting arrangements

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
  3. 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  4. 04It runs only when your filing indicators mark C 05.01 as reported.
  5. 05This 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

  • 0062Instruments issued before 27 June 2019 that do not meet the eligibility criteria related to write-down and conversion powers pursuant to Art
  • 0063of which: Instruments without legally or contractually mandatory write-down or conversion upon exercise of powers in accordance with Article
  • 0064of which: Instruments governed by third-country law without effective and enforceable exercise of powers in accordance with Article 59 of Di
  • 0065of which: Instruments subject to set-off or netting arrangements

Columns

  • 0020Adjustments to AT1
  • 0030Adjustments to T2

A worked example

The first of its checks, with simple numbers.

Illustrative values
Instruments without legally or contractually mandatory write-down or conversion upon exercise of powers in accordance with Article1,200
Instruments governed by third-country law without effective and enforceable exercise of powers in accordance with Article 59 of Di800
Instruments subject to set-off or netting arrangements450
Together2,450
What the rule then expects

Instruments issued before 27 June 2019 that do not meet the eligibility criteria related to write-down and conversion powers pursuant to Art can then be at most 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{C_05.01,r0062,c0020,} <= {C_05.01,r0063,c0020,} + {C_05.01,r0064,c0020,} + {C_05.01,r0065,c0020,}

The next one:

{C_05.01,r0062,c0030,} <= {C_05.01,r0063,c0030,} + {C_05.01,r0064,c0030,} + {C_05.01,r0065,c0030,}

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.