The rule in plain words
Total exposures, memorandum item: RWEA related to the impact of application of transitional provisions on CCF for unconditionally cancellable commitiments cannot be negative.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
MEMORANDUM ITEM: RWEA RELATED TO THE IMPACT OF APPLICATION OF TRANSITIONAL PROVISIONS ON CCF FOR UNCONDITIONALLY CANCELLABLE COMMITIMENTS: TOTAL EXPOSURES >= 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 07.00 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
Credit and counterparty credit risks and free deliveries: standardised approach to capital requirements (C 07.00.a)
Row
- 0010TOTAL EXPOSURES
Column
- 0241MEMORANDUM ITEM: RWEA RELATED TO THE IMPACT OF APPLICATION OF TRANSITIONAL PROVISIONS ON CCF FOR UNCONDITIONALLY CANCELLABLE COMMITIMENTS
A worked example
The first of its checks, with simple numbers.
Total exposures, memorandum item: RWEA related to the impact of application of transitional provisions on CCF for unconditionally cancellable commitiments 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. Cells are written as {template, row, column, sheet}.
{C_07.00.a,r0010,c0241,} >= 0Other rules on C 07.00.a
- None of the 287 values it checks in credit and counterparty credit risks and free deliveries can be negative (v23764_s)Warning
- None of the 82 values it checks in credit and counterparty credit risks and free deliveries can be negative (v23762_s)Warning
- Value adjustments and provision associated with the original exposure cannot be more than zero (v23759_s)Warning
- Each of the 119 values it checks in credit and counterparty credit risks and free deliveries cannot be more than zero (v23755_s)Warning
- Each of the 94 values it checks in credit and counterparty credit risks and free deliveries cannot be more than zero (v23781_s)Warning
- None of the 141 values it checks in credit and counterparty credit risks and free deliveries can be negative (v23782_s)Warning
- Fully adjusted exposure value (E*) cannot be negative (v23783_s)Warning
- With a credit assessment by a nominated ECAI cannot be negative (v23784_s)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.