The rule in plain words
Amount cannot be negative.
EBA checks it for 97 rows, from total deferred tax assets (0010) to capital instruments and the related share premium accounts classified as liabilities under applicable accounting standards (0906). That makes 97 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.
Indirect holdings of AT1 capital of financial sector entities where the institution does not have a significant investment >= 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 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
- 0010Total deferred tax assets
- 0020Deferred tax assets that do not rely on future profitability
- 0030Deferred tax assets that rely on future profitability and do not arise from temporary differences
- 0040Deferred tax assets that rely on future profitability and arise from temporary differences
- 0050Total deferred tax liabilities
- 0060Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability
- 0070Deferred tax liabilities deductible from deferred tax assets that rely on future profitability
- 0080Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and do not arise from temporary di
- 0090Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and arise from temporary differenc
- 0093Tax overpayments and tax loss carry backs
- 0096Deferred tax assets subject to a risk weight of 250%
- 0097Deferred tax assets subject to a risk weight of 0%
- 0110Total credit risk adjustments, additional value adjustments and other own funds reductions eligible for inclusion in the calculation of the
- 0120General credit risk adjustments
- 0130Specific credit risk adjustments
- 0131Additional value adjustments and other own funds reductions
- 0140Total expected loss eligible
- 0150Specific credit risk adjustments and positions treated similarly
- 0155Total expected losses eligible
- 0160Risk weighted exposure amounts for calculating the cap to the excess of provision eligible as T2
- 0170Total gross provisions eligible for inclusion in T2 capital
- 0180Risk weighted exposure amounts for calculating the cap to the provision eligible as T2
- 0190Threshold non deductible of holdings in financial sector entities where an institution does not have a significant investment
- 020010% CET1 threshold
- 021017.65% CET1 threshold
- 0225Eligible capital for the purposes of qualifying holdings outside the financial sector
- 0230Holdings of CET1 capital of financial sector entities where the institution does not have a significant investment, net of short positions
- 0240Direct holdings of CET1 capital of financial sector entities where the institution does not have a significant investment
- 0250Gross direct holdings of CET1 capital of financial sector entities where the institution does not have a significant investment
- 0270Indirect holdings of CET1 capital of financial sector entities where the institution does not have a significant investment
- 0280Gross indirect holdings of CET1 capital of financial sector entities where the institution does not have a significant investment
- 0291Synthetic holdings of CET1 capital of financial sector entities where the institution does not have a significant investment
- 0292Gross synthetic holdings of CET1 capital of financial sector entities where the institution does not have a significant investment
- 0300Holdings of AT1 capital of financial sector entities where the institution does not have a significant investment, net of short positions
- 0310Direct holdings of AT1 capital of financial sector entities where the institution does not have a significant investment
- 0320Gross direct holdings of AT1 capital of financial sector entities where the institution does not have a significant investment
- 0340Indirect holdings of AT1 capital of financial sector entities where the institution does not have a significant investment
- 0350Gross indirect holdings of AT1 capital of financial sector entities where the institution does not have a significant investment
- 0361Synthetic holdings of AT1 capital of financial sector entities where the institution does not have a significant investment
- 0362Gross synthetic holdings of AT1 capital of financial sector entities where the institution does not have a significant investment
And 57 more.
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
What the rule then expects
Indirect holdings of AT1 capital of financial sector entities where the institution does not have a significant investment must then be at least 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{C_04.00,r0340,c0010,} >= 0The next five:
{C_04.00,r0450,c0010,} >= 0{C_04.00,r0870,c0010,} >= 0{C_04.00,r0380,c0010,} >= 0{C_04.00,r0880,c0010,} >= 0{C_04.00,r0130,c0010,} >= 0And 91 more, the same formula for the other cells it covers.
Other rules on C 04.00
- Floor adjustment after application of transitional cap must be less than fully loaded floor adjustment (v22979_m)Warning
- 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
- 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.