The rule in plain words
Percentage cannot be negative.
EBA checks it for four rows: own funds requirements weights, countercyclical capital buffer rate set by the designated authority, countercyclical capital buffer rate applicable for the country of the institution and institution-specific countercyclical capital buffer rate. That makes four 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.
Percentage: Own funds requirements weights >= 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 09.04 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
Rows
- 0110Own funds requirements weights
- 0120Countercyclical capital buffer rate set by the Designated Authority
- 0130Countercyclical capital buffer rate applicable for the country of the institution
- 0140Institution-specific countercyclical capital buffer rate
Column
- 0020Percentage
A worked example
The first of its checks, with simple numbers.
Own funds requirements weights, percentage 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_09.04,r0110,c0020,} >= 0The next three:
{C_09.04,r0120,c0020,} >= 0{C_09.04,r0130,c0020,} >= 0{C_09.04,r0140,c0020,} >= 0Other rules on C 09.04
- Amount cannot be negative (v4745_s)Warning
- If the sum of two rows is more than zero, relevant credit exposures, market risk must be more than zero (v8730_m)Warning
- Total own funds requirements for CCB, amount minus total own funds requirements for CCB, amount must equal total own funds requirements for CCB, amount (v8732_m)Not run yet
- Total own funds requirements for CCB must equal the sum of its three parts (v10627_m)Warning
- Percentage cannot be more than 1 (v10656_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.