Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

None of the nine values it checks in definition of internal models can be negative (C 105.01, EBA rule v4327_s)

A warning in the benchmarking of credit risk models return (SBP credit risk), on template C 105.01, definition of internal models.

Check your file against this ruleWhat to do if it fails

The rule in plain words

None of the values it checks in definition of internal models can be negative.

EBA checks it for nine columns, from EAD (0040) to RWA Add-ons (0150). That makes nine 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.

Recovery period of the foreclosed assets for not cured defaults: Recovery period of the foreclosed assets for not cured defaults >= 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 105.01 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

Definition of internal models (C 105.01)

Columns

  • 0040EAD
  • 0050EAD weighted average default rate for calibration
  • 0060Case weighted average default rate for calibration
  • 0070Long-run PD
  • 0080Cure rate for defaulted assets
  • 0090Recovery rate of the foreclosed assets for not cured defaults
  • 0100Recovery period of the foreclosed assets for not cured defaults
  • 0130RWA
  • 0150RWA Add-ons

A worked example

The first of its checks, with simple numbers.

What the rule then expects

Recovery period of the foreclosed assets for not cured defaults 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_105.01,,c0100,} >= 0

The next five:

{C_105.01,,c0080,} >= 0{C_105.01,,c0130,} >= 0{C_105.01,,c0150,} >= 0{C_105.01,,c0050,} >= 0{C_105.01,,c0090,} >= 0

And 3 more, the same formula for the other cells it covers.

Every SBP credit risk rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.