The rule in plain words
None of the values it checks in information on subsidiaries undertakings can be negative.
EBA checks it for 22 columns, from CET1 (0060) to fixed overhead requirements (0270). That makes 22 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.
AT1: AT1 >= 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 I 11.03 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
Information on subsidiaries undertakings (I 11.03)
Columns
- 0060CET1
- 0070AT1
- 0080T2
- 0090Holdings
- 0100Subordinated claims
- 0110Contingent liabilities of the parent in favour of the entity
- 0120Total own fund requirements
- 0130Permanent minimum capital
- 0140K-factor requirement
- 0150Assets under management
- 0160Client money held - Segregated
- 0170Client money held - Non-segregated
- 0180Assets safeguarded and administered
- 0190Client orders handled - Cash trades
- 0200Client orders handled - Derivatives Trades
- 0210K-Net positions risk requirement
- 0220Clearing margin given
- 0230Trading counterparty default
- 0240Daily trading flow - Cash trades
- 0250Daily trading flow - Derivative trades
- 0260K-Concentration risk requirement
- 0270Fixed overhead requirements
A worked example
The first of its checks, with simple numbers.
AT1 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}.
{I_11.03,,c0070,} >= 0The next five:
{I_11.03,,c0190,} >= 0{I_11.03,,c0260,} >= 0{I_11.03,,c0170,} >= 0{I_11.03,,c0120,} >= 0{I_11.03,,c0180,} >= 0And 16 more, the same formula for the other cells it covers.
Checks like this one, run at the point of submission, are the first step to real-time supervision.