The rule in plain words
Own funds must equal total tier 1 capital plus tier 2 capital.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Own funds = Total tier 1 capital + Tier 2 capital
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark C 06.02 as reported.
- 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
Group Solvency (C 06.02)
Columns
- 0120Own funds
- 0150Total tier 1 capital
- 0230Tier 2 capital
A worked example
The first of its checks, with simple numbers.
Illustrative values
Total tier 1 capital1,200
Tier 2 capital800
Together2,000
What the rule then expects
Own funds 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 writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_06.02,,c0120,} = {C_06.02,,c0150,} + {C_06.02,,c0230,}Other rules on C 06.02
- A check on group Solvency (v11871_m)Not run yet
- A check on group Solvency (v8713_m)Not run yet
- If memorandum item: goodwill / (+) negative goodwill is reported, goodwill / (+) negative goodwill must be reported (v8711_m)Warning
- If qualifying own funds included in consolidated own funds is reported, consolidated own funds must be reported (v8710_m)Warning
- If qualifying own funds instruments included in consolidated tier 2 capital is reported, consolidated own funds must be reported (v8709_m)Warning
- If qualifying tier 1 instruments included in consolidated additional tier 1 capital is reported, additional tier 1 must be reported (v8708_m)Warning
- If minority interests included in consolidated common equity tier 1 capital is reported, common equity tier 1 must be reported (v8707_m)Warning
- Combined buffer requirements must equal a sum of five terms (v6289_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.