The rule in plain words
Value cannot be negative.
EBA checks it for seven rows: business indicator, interest, leases and dividend component, ILDC related to the individual institution or consolidated group (excluding entities considered by Article 314(3), ILDC for entities considered by Article 314(3), services component, financial component, and memorandum item:ILDC related to the individual institution or consolidated group, including entities considered by Article 314(3). That makes seven 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.
Value: Memorandum Item:ILDC related to the Individual institution/consolidated Group, including entities considered by Article 314(3) >= 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 16.01 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
Operational risk - own funds requirements (opr of) (C 16.01.a)
Rows
- 0020Business indicator
- 0030Interest, leases and dividend component
- 0040ILDC related to the individual institution/consolidated Group (excluding entities considered by Article 314(3)
- 0050ILDC for entities considered by Article 314(3)
- 0060Services component
- 0070Financial component
- 0100Memorandum Item:ILDC related to the Individual institution/consolidated Group, including entities considered by Article 314(3)
Column
- 0010Value
A worked example
The first of its checks, with simple numbers.
Memorandum item:ILDC related to the individual institution or consolidated group, including entities considered by Article 314(3), value must then be at least 0.
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_16.01.a,r0100,c0010,} >= 0The next five:
{C_16.01.a,r0030,c0010,} >= 0{C_16.01.a,r0050,c0010,} >= 0{C_16.01.a,r0020,c0010,} >= 0{C_16.01.a,r0040,c0010,} >= 0{C_16.01.a,r0060,c0010,} >= 0And 1 more, the same formula for the other cells it covers.
Other rules on C 16.01.a
- Own fund requirements cannot be negative (v23215_s)Warning
- Business indicator component and ASA, risk exposure amount cannot be negative (v23216_s)Warning
- Risk exposure amount must equal 12.5 times own fund requirements (v22917_m)Warning
- Interest, leases and dividend component must equal the sum of its two parts (v22916_m)Warning
- Business indicator must equal the sum of its three parts (v22915_m)Warning
- Financial component, value must equal the sum of its two parts (v90320_m)Warning
- Services component, value must equal the larger of two values plus the larger of two values (v90321_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.