The rule in plain words
Number of obligors at the end of the previous year cannot be less than defaulted during the year.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Number of obligors at the end of the previous year >= Of which: defaulted during the year
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C 08.05.1 as reported.
- 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
Columns
- 0020Number of obligors at the end of the previous year
- 0030Of which: defaulted during the year
A worked example
The first of its checks, with simple numbers.
Illustrative values
Number of obligors at the end of the previous year1,200
What the rule then expects
Defaulted during the year can then be at most 1,200.
1,200Passes
1,300Fails
A file that reports 1,200 passes. One that reports 1,300 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_08.05.1.a,,c0020,} >= {C_08.05.1.a,,c0030,}Other rules on C 08.05.1.a
- Average historical annual default rate cannot be more than 1 (v09768_m)Warning
- Observed average default rate cannot be more than 1 (v09767_m)Warning
- Arithmetic average PD cannot be more than 1 (v09766_m)Warning
- None of the five values it checks in credit risk and free deliveries can be negative (v10483_s)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.