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2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

2. instruments that qualified for Article 57, point (ca) and Article 154(8) and (9) of Directive 2006/48/EC, subject to the limit of Article 489 of Regulation (EU) No 575/2013: amount of instruments plus related share premium cannot be negative (EBA rule v23970_s)

A warning in the own funds and capital requirements return (COREP own funds), on template C 05.02, capital adequacy - transitional provisions: grandfathered instruments not constituting State aid.

Check your file against this ruleWhat to do if it fails

The rule in plain words

For 2. instruments that qualified for Article 57, point (ca) and Article 154(8) and (9) of Directive 2006/48/EC, subject to the limit of Article 489 of Regulation (EU) No 575/2013: amount of instruments plus related share premium cannot be negative.

EBA checks it for 15 rows, from instruments that qualified for Article 57, point (a) of Directive 2006/48/EC (0010) to excess on the limit of AT1 grandfathered instruments (0150). That makes 15 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.

Amount of instruments plus related share premium: 2.2 Grandfathered instruments with a call and incentive to redeem >= 0

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
  3. 03EBA compares the values exactly here: there is no rounding tolerance.
  4. 04It runs only when your filing indicators mark C 05.02 as reported.
  5. 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 - transitional provisions: grandfathered instruments not constituting State aid (C 05.02)

Rows

  • 00101. Instruments that qualified for Article 57, point (a) of Directive 2006/48/EC
  • 00202. Instruments that qualified for Article 57, point (ca) and Article 154(8) and (9) of Directive 2006/48/EC, subject to the limit of Article
  • 00302.1 Total instruments without a call or an incentive to redeem
  • 00402.2 Grandfathered instruments with a call and incentive to redeem
  • 00502.2.1 Instruments with a call exercisable after the reporting date, and which meet the conditions in Article 52 of Regulation (EU) No 575/20
  • 00602.2.2 Instruments with a call exercisable after the reporting date, and which do not meet the conditions in Article 52 of Regulation (EU) No
  • 00702.2.3 Instruments with a call exercisable prior to or on 20 July 2011, and which do not meet the conditions in Article 52 of Regulation (EU)
  • 00802.3 Excess on the limit of CET1 grandfathered instruments
  • 00903. Items that qualified for Article 57, points (e), (f), (g) or (h) of Directive 2006/48/EC, subject to the limit of Article 490 of Regulati
  • 01003.1 Total items without an incentive to redeem
  • 01103.2 Grandfathered items with an incentive to redeem
  • 01203.2.1 Items with a call exercisable after the reporting date, and which meet the conditions in Article 63 of Regulation (EU) No 575/2013 aft
  • 01303.2.2 Items with a call exercisable after the reporting date, and which do not meet the conditions in Article 63 of Regulation (EU) No 575/2
  • 01403.2.3 Items with a call exercisable prior to or on 20 July 2011, and which do not meet the conditions in Article 63 of Regulation (EU) No 57
  • 01503.3 Excess on the limit of AT1 grandfathered instruments

Column

  • 0010Amount of instruments plus related share premium

A worked example

The first of its checks, with simple numbers.

What the rule then expects

Grandfathered instruments with a call and incentive to redeem, amount of instruments plus related share premium must then be at least 0.

0Passes
-100Fails

A file that reports 0 passes. One that reports -100 fails, by 100.

The numbers are illustrative.

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_05.02,r0040,c0010,} >= 0

The next five:

{C_05.02,r0140,c0010,} >= 0{C_05.02,r0100,c0010,} >= 0{C_05.02,r0150,c0010,} >= 0{C_05.02,r0030,c0010,} >= 0{C_05.02,r0020,c0010,} >= 0

And 9 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.