The rule in plain words
Total cannot be negative.
EBA checks it for ten columns, from total risk exposure amount (0250) to qualifying own funds instruments included in consolidated tier 2 capital (0340). That makes ten 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.
Qualifying tier 1 instruments included in consolidated additional tier 1 capital: Total >= 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 06.01 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
Group Solvency - total (C 06.01)
Row
- 0010Total
Columns
- 0250Total risk exposure amount
- 0260Credit; counterparty credit; dilution risks, free deliveries and settlement/delivery risk
- 0270Market risks
- 0280Operational risk
- 0290Other risk exposure amounts
- 0300Qualifying own funds included in consolidated own funds
- 0310Qualifying tier 1 instruments included in consolidated tier 1 capital
- 0320Minority interests included in consolidated common equity tier 1 capital
- 0330Qualifying tier 1 instruments included in consolidated additional tier 1 capital
- 0340Qualifying own funds instruments included in consolidated tier 2 capital
A worked example
The first of its checks, with simple numbers.
Total, qualifying tier 1 instruments included in consolidated additional tier 1 capital 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_06.01,r0010,c0330,} >= 0The next five:
{C_06.01,r0010,c0320,} >= 0{C_06.01,r0010,c0310,} >= 0{C_06.01,r0010,c0300,} >= 0{C_06.01,r0010,c0340,} >= 0{C_06.01,r0010,c0260,} >= 0And 4 more, the same formula for the other cells it covers.
Other rules on C 06.01
- Qualifying tier 1 instruments included in consolidated tier 1 capital must equal the sum of its two parts (v4160_m)Warning
- Qualifying own funds included in consolidated own funds must equal the sum of its two parts (v4159_m)Warning
- Total risk exposure amount must equal the sum of its four parts (v4158_m)Warning
- A calculation check across group Solvency: total and group Solvency (C 06.02, v4810_m)Warning
- Combined buffer requirements must equal a sum of five terms (v6288_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.