The rule in plain words
The absolute value of corporates cannot be less than the absolute value of SME.
EBA checks it for ten columns, from original exposure pre conversion factors (0010) to risk weighted exposure amount after supporting factors and after FX-mismatch (0090). That makes ten 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.
Write-offs: the absolute value of Corporates >= the absolute value of Of which: SME
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 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) (C 09.01.a)
Rows
- 0070Corporates
- 0075Of which: SME
Columns
- 0010ORIGINAL EXPOSURE PRE CONVERSION FACTORS
- 0050General credit risk adjustments
- 0055Specific credit risk adjustments
- 0060Write-offs
- 0061Additional value adjustments and other own funds reductions
- 0075EXPOSURE VALUE
- 0080RISK WEIGHTED EXPOSURE AMOUNT PRE SUPPORTING FACTORS AND PRE FX-MISMATCH
- 0081(-) Adjustment to risk-weighted exposure amount due to SME supporting factor
- 0082(-) Adjustment to risk-weighted exposure amount due to infrastructure projects supporting factor
- 0090RISK WEIGHTED EXPOSURE AMOUNT AFTER SUPPORTING FACTORS AND AFTER FX-MISMATCH
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}.
abs({C_09.01.a,r0070,c0060,}) >= abs({C_09.01.a,r0075,c0060,})The next five:
abs({C_09.01.a,r0070,c0082,}) >= abs({C_09.01.a,r0075,c0082,})abs({C_09.01.a,r0070,c0090,}) >= abs({C_09.01.a,r0075,c0090,})abs({C_09.01.a,r0070,c0050,}) >= abs({C_09.01.a,r0075,c0050,})abs({C_09.01.a,r0070,c0010,}) >= abs({C_09.01.a,r0075,c0010,})abs({C_09.01.a,r0070,c0055,}) >= abs({C_09.01.a,r0075,c0055,})And 4 more, the same formula for the other cells it covers.
Other rules on C 09.01.a
- The absolute value of retail cannot be less than the absolute value of SME (row 0080, v23611_m)Warning
- The absolute value of secured by mortgages on immovable property and ADC exposures cannot be less than the absolute value of SME (row 0090, v23612_m)Warning
- Secured by mortgages on immovable property and ADC exposures must equal the sum of its eleven parts (row 0090, v23670_h)Warning
- The absolute value of retail cannot be less than the absolute value of SME (row 0080, v23731_h)Warning
- The absolute value of secured by mortgages on immovable property and ADC exposures cannot be less than the absolute value of SME (row 0090, v23732_h)Warning
- Specialised lending cannot be more than corporates (v23040_m)Warning
- Each of the 70 values it checks in geographical breakdown of exposures cannot be more than zero (v10299_s)Warning
- Claims in the form of CIU must equal the sum of its three parts (v09798_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.