Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Exposure net of value adjustments and provisions must equal the sum of its two parts (C 07.00.a, EBA rule v23267_m)

A warning in the own funds and capital requirements return (COREP own funds), on template C 07.00.a, credit and counterparty credit risks and free deliveries: standardised approach to capital requirements.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Exposure net of value adjustments and provisions must equal original exposure pre conversion factors plus (-) value adjustments and provision associated with the original exposure.

EBA checks it for 41 rows, from total exposures (0010) to fall-back approach (0283). That makes 41 checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

2%, Exposure net of value adjustments and provisions = 2%, Original exposure pre conversion factors + 2%, (-) Value adjustments and provision associated with the original exposure

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark C 07.00 as reported.
  6. 06This 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

Credit and counterparty credit risks and free deliveries: standardised approach to capital requirements (C 07.00.a)

Rows

  • 0010TOTAL EXPOSURES
  • 0011of which: Exposures to central banks
  • 0015of which: Defaulted exposures in exposure classes 'CIUs' and ‘equity exposures’
  • 0020of which: SME
  • 0030of which: exposures subject to SME-supporting factor
  • 0035of which: exposures subject to infrastructure projects supporting factor
  • 0050of which: Exposures under the permanent partial use of the standardised approach
  • 0060of which: Exposures under the standardised approach with prior supervisory permission to carry out a sequential IRB implementation
  • 0061of which: IPRE exposures meeting any of the conditions laid down in Article 124(2), point (a)(ii), points (1) to (4) of Regulation (EU) No 5
  • 0062of which: IPRE exposures where the derogation set out in Article 125(2) of Regulation (EU) No 575/2013, subparagraph 3 is applied
  • 0063of which: IPRE exposures where the derogation set out in Article 126(2) of Regulation (EU) No 575/2013, subparagraph 3 is applied
  • 0064of which: Equity exposures under the IRB approach
  • 0070On balance sheet exposures subject to credit risk
  • 0080Off balance sheet exposures subject to credit risk
  • 01400%
  • 01502%
  • 01604%
  • 017010%
  • 018020%
  • 018530%
  • 019035%
  • 019540%
  • 019645%
  • 020050%
  • 020560%
  • 022075%
  • 022580%
  • 022690%
  • 0230100%
  • 0231105%
  • 0232110%
  • 0235130%
  • 0240150%
  • 0250250%
  • 0260370%
  • 0265400%
  • 02701250%
  • 0280Other risk weights
  • 0281Look-through approach
  • 0282Mandate-based approach

And 1 more.

Columns

  • 0010Original exposure pre conversion factors
  • 0030(-) Value adjustments and provision associated with the original exposure
  • 0040Exposure net of value adjustments and provisions

A worked example

The first of its checks, with simple numbers.

Illustrative values
Original exposure pre conversion factors1,200
(-) value adjustments and provision associated with the original exposure800
Together2,000
What the rule then expects

Exposure net of value adjustments and provisions must then be 2,000.

2,000Passes
2,100Fails

A file that reports 2,000 passes. One that reports 2,100 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{C_07.00.a,r0150,c0040,} = {C_07.00.a,r0150,c0010,} + {C_07.00.a,r0150,c0030,}

The next five:

{C_07.00.a,r0030,c0040,} = {C_07.00.a,r0030,c0010,} + {C_07.00.a,r0030,c0030,}{C_07.00.a,r0185,c0040,} = {C_07.00.a,r0185,c0010,} + {C_07.00.a,r0185,c0030,}{C_07.00.a,r0235,c0040,} = {C_07.00.a,r0235,c0010,} + {C_07.00.a,r0235,c0030,}{C_07.00.a,r0226,c0040,} = {C_07.00.a,r0226,c0010,} + {C_07.00.a,r0226,c0030,}{C_07.00.a,r0140,c0040,} = {C_07.00.a,r0140,c0010,} + {C_07.00.a,r0140,c0030,}

And 35 more, the same formula for the other cells it covers.

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.