Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

None of the six values it checks in credit risk: equity can be negative (C 10.02, EBA rule v3733_s)

A warning in the own funds and capital requirements return (COREP own funds), on template C 10.02, credit risk: equity - IRB approaches to capital requirements - Breakdown of total exposures under the PD/LGD approach by obligor grades.

Check your file against this ruleWhat to do if it fails

The rule in plain words

None of the values it checks in credit risk: equity can be negative.

EBA checks it for six columns: PD assigned to the obligor grade or pool (%), original exposure pre conversion factors, exposure value, exposure weighted average LGD (%), risk weighted exposure amount, and memorandum item: expected loss amount. That makes six 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.

Memorandum item: Expected loss amount: Memorandum item: Expected loss amount >= 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 10.02 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

Credit risk: equity - IRB approaches to capital requirements - Breakdown of total exposures under the PD/LGD approach by obligor grades (C 10.02)

Columns

  • 0010PD assigned to the obligor grade or pool (%)
  • 0020Original exposure pre conversion factors
  • 0060Exposure value
  • 0070Exposure weighted average LGD (%)
  • 0080Risk weighted exposure amount
  • 0090Memorandum item: Expected loss amount

A worked example

The first of its checks, with simple numbers.

What the rule then expects

Memorandum item: expected loss amount 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_10.02,,c0090,} >= 0

The next five:

{C_10.02,,c0070,} >= 0{C_10.02,,c0010,} >= 0{C_10.02,,c0060,} >= 0{C_10.02,,c0080,} >= 0{C_10.02,,c0020,} >= 0

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.