The rule in plain words
Specialised lending cannot be more than corporates.
EBA checks it for three columns: defaulted exposures, observed new defaults for the period, and credit risk adjustments or write-offs for observed new defaults. That makes three 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.
Observed new defaults for the period: of which: Specialised lending <= Corporates
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 09.01 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
Geographical breakdown of exposures by residence of the obligor (SA exposures) - exposures in default (C 09.01.b)
Rows
- 0070Corporates
- 0076of which: Specialised lending
Columns
- 0020Defaulted exposures
- 0040Observed new defaults for the period
- 0070Credit risk adjustments/write-offs for observed new defaults
A worked example
The first of its checks, with simple numbers.
Corporates must then be at least 1,200.
A file that reports 1,200 passes. One that reports 1,100 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{C_09.01.b,r0076,c0040,} <= {C_09.01.b,r0070,c0040,}The next two:
{C_09.01.b,r0076,c0070,} <= {C_09.01.b,r0070,c0070,}{C_09.01.b,r0076,c0020,} <= {C_09.01.b,r0070,c0020,}Other rules on C 09.01.b
- Secured by mortgages on immovable property and ADC exposures must equal the sum of its eleven parts (v22982_m)Warning
- Secured by mortgages on immovable property and ADC exposures must equal the sum of its eleven parts (v23671_h)Warning
- Total exposures must equal the sum of its 15 parts (v6051_m)Warning
- The absolute value of secured by mortgages on immovable property and ADC exposures cannot be less than the absolute value of SME (v5819_h)Blocking
- The absolute value of retail cannot be less than the absolute value of SME (v5818_h)Blocking
- The absolute value of corporates cannot be less than the absolute value of SME (v5817_h)Blocking
- Defaulted exposures cannot be less than observed new defaults for the period (v4775_m)Warning
- None of the 102 values it checks in geographical breakdown of exposures can be negative (v3725_s)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.