The rule in plain words
Surplus or Deficit of total capital must equal own funds minus total own funds requirement.
All the values are in the amount column (0010).
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
I_02.02: Surplus(+)/Deficit(-) of Total capital = I_01.00: Own funds - I_02.01: Total own funds requirement
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark I 01.00, I 02.01 and I 02.02 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
Own funds composition (I 01.00)
Row
- 0010Own funds
Column
- 0010Amount
Own funds requirements (I 02.01)
Row
- 0130Total own funds requirement
Column
- 0010Amount
Capital ratios (I 02.02)
Row
- 0060Surplus(+)/Deficit(-) of Total capital
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
Surplus or Deficit of total capital must then be 400.
A file that reports 400 passes. One that reports 500 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}.
{I_02.02,r0060,c0010,} = {I_01.00,r0010,c0010,} - {I_02.01,r0130,c0010,}Other rules on I 01.00
- Surplus or Deficit of Tier 1 capital must equal tier 1 capital minus total own funds requirement times 0.75 (v11106_m)Warning
- Surplus or Deficit of CET 1 capital must equal common equity Tier 1 capital minus total own funds requirement times 0.56 (v11105_m)Warning
- Additional Tier 1 capital must equal the sum of its seven parts (v11126_m)Warning
- Total deductions from additional Tier 1 must equal the sum of its four parts (v11128_m)Warning
- Own AT1 instruments must equal the sum of its three parts (v11129_m)Warning
- Tier 2 capital must equal the sum of its six parts (v11130_m)Warning
- Total deductions fromTier 2 must equal the sum of its three parts (v11132_m)Warning
- Own T2 instruments must equal the sum of its three parts (v11133_m)Warning
Every IFR class 2 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.