The rule in plain words
None of the values it checks in credit risk and free deliveries can be negative.
EBA checks it for five columns: total exposure value as defined in Article 166 of Regulation (EU) No 575/2013, total exposure value subject to SA and IRB, percentage of total exposure value subject to permanent partial use of SA (%), percentage of total exposure value subject to a roll-out plan (%), and percentage of total exposure value subject to IRB approach (%). And for 22 rows, from central governments or central banks (0010) to total (0170). That makes 110 checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
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.
Percentage of total exposure value subject to IRB approach (%): OF WHICH RETAIL – SECURED BY RESIDENTIAL REAL ESTATE NON-SMES >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark C 08.07 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
Rows
- 0010Central governments or central banks
- 0020Regional governments or local authorities
- 0030Public sector entities
- 0040Institutions
- 0050Corporates
- 0060Of which: corporates - specialised lending, excluding slotting approach
- 0070Of which: corporates - specialised lending, including slotting approach
- 0080Of which: corporates - SMEs
- 0085OF WHICH: CORPORATES - PURCHASED RECEIVABLES
- 0090Retail
- 0100OF WHICH RETAIL – SECURED BY RESIDENTAL REAL ESTATE SMES
- 0110OF WHICH RETAIL – SECURED BY RESIDENTIAL REAL ESTATE NON-SMES
- 0120Of which retail – qualifying revolving
- 0125OF WHICH: RETAIL – PURCHASED RECEIVABLES
- 0130Of which retail – other smes
- 0131OF WHICH RETAIL – OTHER SMES - SECURED BY COMMERCIAL REAL ESTATE
- 0140Of which retail – other non-SMEs
- 0141OF WHICH RETAIL – OTHER NON-SMES - SECURED BY COMMERCIAL REAL ESTATE
- 0150Equity
- 0155COLLECTIVE INVESTMENT UNDERTAKINGS (CIUs)
- 0160Other non-credit obligation assets
- 0170Total
Columns
- 0010Total exposure value as defined in Article 166 of Regulation (EU) No 575/2013
- 0020Total exposure value subject to SA and IRB
- 0030Percentage of total exposure value subject to permanent partial use of SA (%)
- 0040Percentage of total exposure value subject to a roll-out plan (%)
- 0050Percentage of total exposure value subject to IRB approach (%)
A worked example
The first of its checks, with simple numbers.
Retail – secured by residential real estate non-SMES, percentage of total exposure value subject to IRB approach (%) must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{C_08.07,r0110,c0050,} >= 0The next five:
{C_08.07,r0070,c0010,} >= 0{C_08.07,r0160,c0010,} >= 0{C_08.07,r0050,c0020,} >= 0{C_08.07,r0010,c0050,} >= 0{C_08.07,r0155,c0020,} >= 0And 104 more, the same formula for the other cells it covers.
Other rules on C 08.07
- Percentage of total exposure value subject to IRB approach cannot be more than 1 (v09771_m)Warning
- Percentage of total exposure value subject to a roll-out plan cannot be more than 1 (v09770_m)Warning
- Percentage of total exposure value subject to permanent partial use of SA cannot be more than 1 (v09769_m)Warning
- The absolute value of corporates cannot be less than the absolute value of corporates, SMEs (v23666_h)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.