The rule in plain words
Total risk exposure amount, TREA must equal the smaller of the larger of row 0036, TREA and output floor applied (%), amount times row 0010, output floor S-TREA and 1.25 times row 0036, TREA.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
C_02.00.A: TOTAL RISK EXPOSURE AMOUNT, TREA = the smaller of the larger of C_02.00.A: row 0036, TREA and C_04.00: Output floor applied (%) × C_02.00.B: row 0010, Output floor S-TREA and 1.25 × C_02.00.A: row 0036, TREA
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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 02.00 and C 04.00 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
Capital adequacy - risk exposure amounts (C 02.00.a)
Rows
- 0010TOTAL RISK EXPOSURE AMOUNT
- 0036No label in EBA’s template
Column
- 0010TREA
Own funds requirements (C 02.00.b)
Row
- 0010No label in EBA’s template
Column
- 0020Output floor S-TREA
Capital adequacy - Memorandum items (C 04.00)
Row
- 0900Output floor applied (%)
Column
- 0010Amount
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_02.00.a,r0010,c0010,} = min(max({C_02.00.a,r0036,c0010,},{C_04.00,r0900,c0010,} * {C_02.00.b,r0010,c0020,}),1.25 * {C_02.00.a,r0036,c0010,})Other rules on C 02.00.a
- Total risk exposure amount must equal row 0035 plus row 0036 (v23734_m)Warning
- TREA cannot be negative (v23705_s)Warning
- Row 0036 must equal the sum of its eight parts (v23971_m)Warning
- TREA must be reported (e23361_e)Warning
- Other items, TREA must equal total exposures, risk weighted exposure amount after supporting factors and after FX-mismatch (v23296_m)Warning
- Equity, TREA must equal total exposures, risk weighted exposure amount after supporting factors and after FX-mismatch (v23295_m)Warning
- Collective investments undertakings (CIU), TREA must equal total exposures, risk weighted exposure amount after supporting factors and after FX-mismatch (v23294_m)Warning
- Claims on institutions and corporates with a short-term credit assessment, TREA must equal total exposures, risk weighted exposure amount after supporting factors and after FX-mismatch (v23293_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.