The rule in plain words
Total exposures cannot be less than defaulted exposures in exposure classes 'CIUs' and ‘equity exposures’.
All the values are in the exposure value arising from counterparty credit risk column (0210) of C 07.00.b.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Of which: Arising from Counterparty Credit Risk: TOTAL EXPOSURES >= of which: Defaulted exposures in exposure classes 'CIUs' and ‘equity exposures’
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 smaller 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 07.00 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
Rows
- 0010TOTAL EXPOSURES
- 0015of which: Defaulted exposures in exposure classes 'CIUs' and ‘equity exposures’
Column
- 0210Of which: Arising from Counterparty Credit Risk
A worked example
The first of its checks, with simple numbers.
Defaulted exposures in exposure classes 'CIUs' and ‘equity exposures’ can then be at most 1,200.
A file that reports 1,200 passes. One that reports 1,300 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}.
{C_07.00.b,r0010,c0210,} >= {C_07.00.b,r0015,c0210,}Other rules on C 07.00.b
- Total exposures cannot be less than exposures to central banks (v23014_m)Warning
- Total exposures cannot be less than equity exposures under the IRB approach (v23013_m)Warning
- Total exposures cannot be less than IPRE exposures where the derogation set out in Article 126(2) of Regulation (EU) No 575/2013, subparagraph 3 is applied (v23012_m)Warning
- Total exposures cannot be less than IPRE exposures where the derogation set out in Article 125(2) of Regulation (EU) No 575/2013, subparagraph 3 is applied (v23011_m)Warning
- Total exposures cannot be less than IPRE exposures meeting any of the conditions (v23010_m)Warning
- Fall-back approach, exposure value arising from counterparty credit risk must be left empty (v23009_m)Warning
- Mandate-based approach, exposure value arising from counterparty credit risk must be left empty (v23008_m)Warning
- Look-through approach, exposure value arising from counterparty credit risk must be left empty (v23007_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.