The rule in plain words
None of the values it checks in banking book: Indicators of potential climate change physical risk can be negative.
EBA checks it for eleven columns, from gross carrying amount (Mln EUR) (0010) to non-performing exposures (0110). And for twelve rows, from agriculture, forestry and fishing (0010) to repossessed collaterals (0120). That makes 132 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.
> 20 years: B - Mining and quarrying >= 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 D 05.00 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
Banking book - Indicators of potential climate change physical risk: exposures subject to physical risk (I) (D 05.00.a)
Rows
- 0010A - Agriculture, forestry and fishing
- 0020B - Mining and quarrying
- 0030C - Manufacturing
- 0040D - Electricity, gas, steam and air conditioning supply
- 0050E - Water supply; sewerage, waste management and remediation activities
- 0060F - Construction
- 0070G - Wholesale and retail trade; repair of motor vehicles and motorcycles
- 0080H - Transportation and storage
- 0090L - Real estate activities
- 0100Loans collateralised by residential immovable property
- 0110Loans collateralised by commercial immovable property
- 0120Repossessed collaterals
Columns
- 0010Gross carrying amount (Mln EUR)
- 0020<= 5 years
- 0030> 5 year <= 10 years
- 0040> 10 year <= 20 years
- 0050> 20 years
- 0060Average weighted maturity
- 0070Of which exposures sensitive to impact from chronic climate change events
- 0080Of which exposures sensitive to impact from acute climate change events
- 0090Of which exposures sensitive to impact both from chronic and acute climate change events
- 0100Of which Stage 2 exposures
- 0110Of which non-performing exposures
A worked example
The first of its checks, with simple numbers.
Mining and quarrying, > 20 years 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}.
{D_05.00.a,r0020,c0050,} >= 0The next five:
{D_05.00.a,r0020,c0080,} >= 0{D_05.00.a,r0010,c0060,} >= 0{D_05.00.a,r0040,c0080,} >= 0{D_05.00.a,r0070,c0080,} >= 0{D_05.00.a,r0030,c0080,} >= 0And 126 more, the same formula for the other cells it covers.
Other rules on D 05.00.a
- Each of the 36 values it checks in banking book: Indicators of potential climate change physical risk cannot be more than zero (v12823_s)Warning
- Gross carrying amount (Mln EUR) cannot be less than the sum of four columns (row 0110, v89329_m)Warning
- The sum of 24 cells cannot be negative (row 0010, v89374_m)Warning
- The sum of 24 cells cannot be negative (row 0010, v89375_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.