The rule in plain words
(-) value adjustments and provisions cannot be more than zero.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
(-) VALUE ADJUSTMENTS AND PROVISIONS: (-) VALUE ADJUSTMENTS AND PROVISIONS <= 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 14.00 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
Detailed information on securitisations (C 14.00)
Column
- 0210(-) VALUE ADJUSTMENTS AND PROVISIONS
A worked example
The first of its checks, with simple numbers.
What the rule then expects
(-) value adjustments and provisions can then be at most 0.
0Passes
100Fails
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. Cells are written as {template, row, column, sheet}.
{C_14.00,,c0210,} <= 0Other rules on C 14.00
- None of the 29 values it checks in detailed information on securitisations can be negative (v3756_s)Warning
- LGD cannot be more than 1 (v4796_m)Warning
- The absolute value of value adjustments and provisions cannot be more than total amount (v4797_m)Warning
- Own funds requirements before securitisation Kirb cannot be more than 1 (v4798_m)Warning
- Origination date cannot be more than date of latest issuance (v7339_m)Not run yet
- The absolute value of value adjustments and provisions must be less than total amount (v7340_m)Warning
- Institution's share cannot be more than 1 (v7341_m)Warning
- % of IRB in approach applied cannot be more than 1 (v7342_m)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.