The rule in plain words
Amount cannot be negative.
EBA checks it for 29 rows, from fully paid up capital instruments (0040) to excess of deduction from T2 items over T2 capital (deducted in AT1) (0970). That makes 29 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.
Fully paid up capital instruments >= 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 01.00 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Capital adequacy - own funds definition (C 01.00)
Rows
- 0040Fully paid up capital instruments
- 0045Of which: Capital instruments subscribed by public authorities in emergency situations
- 0050Memorandum item: Capital instruments not eligible
- 0060Share premium
- 0210Funds for general banking risk
- 0220Transitional adjustments due to grandfathered CET1 Capital instruments
- 0330Deferred tax liabilities associated to goodwill
- 0335Accounting revaluation of subsidiaries' goodwill derived from the consolidation of subsidiaries attributable to third persons
- 0360Deferred tax liabilities associated to other intangible assets
- 0362Of which: Deferred tax liabilities associated with software assets accounted for as intangible assets
- 0365Accounting revaluation of subsidiaries' other intangible assets derived from the consolidation of subsidiaries attributable to third persons
- 0410Deferred tax liabilities associated to defined benefit pension fund assets
- 0420Defined benefit pension fund assets which the institution has an unrestricted ability to use
- 0530ADDITIONAL TIER 1 CAPITAL
- 0551Fully paid up, directly issued capital instruments
- 0560Memorandum item: Capital instruments not eligible
- 0571Share premium
- 0660Transitional adjustments due to grandfathered AT1 Capital instruments
- 0670Instruments issued by subsidiaries that are given recognition in AT1 Capital
- 0740Excess of deduction from AT1 items over AT1 Capital (deducted in CET1)
- 0750TIER 2 CAPITAL
- 0771Fully paid up, directly issued capital instruments
- 0780Memorandum item: Capital instruments not eligible
- 0791Share premium
- 0880Transitional adjustments due to grandfathered T2 Capital instruments
- 0890Instruments issued by subsidiaries that are given recognition in T2 Capital
- 0910IRB Excess of provisions over expected losses eligible
- 0920SA General credit risk adjustments
- 0970Excess of deduction from T2 items over T2 Capital (deducted in AT1)
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
Fully paid up capital instruments 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{C_01.00,r0040,c0010,} >= 0The next five:
{C_01.00,r0045,c0010,} >= 0{C_01.00,r0050,c0010,} >= 0{C_01.00,r0060,c0010,} >= 0{C_01.00,r0210,c0010,} >= 0{C_01.00,r0220,c0010,} >= 0And 23 more, the same formula for the other cells it covers.
Other rules on C 01.00
- Amount cannot be more than zero (v3685_s)Blocking
- Tier 1 capital plus tier 2 capital must be more than zero (v4747_m)Warning
- A conditional check across capital adequacy: Memorandum items and capital adequacy: own funds definition (C 04.00, v4811_m)Warning
- A conditional check across capital adequacy: Memorandum items and capital adequacy: own funds definition (C 04.00, v4812_m)Warning
- SA general credit risk adjustments cannot be more than 0.0125 times risk weighted exposure amounts for calculating the cap to the provision eligible as T2 (v4813_m)Warning
- Common equity tier 1 capital: a calculation check across capital adequacy: own funds definition and capital adequacy: Memorandum items (C 04.00, v4814_m)Warning
- Additional tier 1 capital: a calculation check across capital adequacy: own funds definition and capital adequacy: Memorandum items (C 04.00, v4815_m)Warning
- Tier 2 capital: a calculation check across capital adequacy: own funds definition and capital adequacy: Memorandum items (C 04.00, v4816_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.