The rule in plain words
Floor adjustment after application of transitional cap must be less than fully loaded floor adjustment.
All the values are in the amount column (0010) of C 04.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
FLOOR ADJUSTMENT AFTER APPLICATION OF TRANSITIONAL CAP < FULLY LOADED FLOOR ADJUSTMENT
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C 04.00 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
Capital adequacy - Memorandum items (C 04.00)
Rows
- 0880FLOOR ADJUSTMENT AFTER APPLICATION OF TRANSITIONAL CAP
- 0890FULLY LOADED FLOOR ADJUSTMENT
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
Fully loaded floor adjustment must then be more than 1,200.
A file that reports 1,300 passes. One that reports 1,200 fails.
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}.
{C_04.00,r0880,c0010,} < {C_04.00,r0890,c0010,}Other rules on C 04.00
- Floor adjustment before application of transitional cap cannot be more than fully loaded floor adjustment (v22938_m)Warning
- Floor adjustment before application of transitional cap cannot be less than floor adjustment after application of transitional cap (v22937_m)Warning
- Amount cannot be negative (v23140_s)Warning
- Total deferred tax assets must equal the sum of its three parts (v23606_m)Warning
- Amount must be reported (e23673_e)Warning
- A check on capital adequacy: Memorandum items (v6295_m)Not run yet
- Combined buffer requirement must equal a sum of five terms (v6290_m)Blocking
- Total exposures, general credit risk adjustments must equal total gross provisions eligible for inclusion in T2 capital, amount (v6277_q)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.