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1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Defaulted exposures cannot be less than observed new defaults for the period (EBA rule v4775_m)

A warning in the own funds and capital requirements return (COREP own funds), on template C 09.01.b, geographical breakdown of exposures by residence of the obligor (SA exposures) - exposures in default.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Defaulted exposures cannot be less than observed new defaults for the period.

EBA checks it for 26 rows, from central governments or central banks (0010) to other exposures (0160). That makes 26 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.

Multilateral Development Banks, Defaulted exposures >= Multilateral Development Banks, Observed new defaults for the period

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
  3. 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  4. 04It runs only when your filing indicators mark C 09.01 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

Geographical breakdown of exposures by residence of the obligor (SA exposures) - exposures in default (C 09.01.b)

Rows

  • 0010Central governments or central banks
  • 0020Regional governments or local authorities
  • 0030Public sector entities
  • 0040Multilateral Development Banks
  • 0050International Organisations
  • 0060Institutions
  • 0070Corporates
  • 0075Of which: SME
  • 0076of which: Specialised lending
  • 0080Retail
  • 0085Of which: SME
  • 0090Secured by mortgages on immovable property and ADC exposures
  • 0091Secured by mortgages on residential immovable property - non-IPRE (secured)
  • 0092Secured by mortgages on residential immovable property - non-IPRE (unsecured)
  • 0093Secured by mortgages on residential immovable property - Other - non-IPRE
  • 0094Secured by mortgages on residential immovable property - IPRE
  • 0095Of which: SME
  • 0115Subordinated debt exposures
  • 0120Covered bonds
  • 0130Claims on institutions and corporate with a short-term credit assessment
  • 0140Collective investments undertakings (CIU)
  • 0141Look-through approach
  • 0142Mandate-based approach
  • 0143Fall-back approach
  • 0150Equity exposures
  • 0160Other exposures

Columns

  • 0020Defaulted exposures
  • 0040Observed new defaults for the period

A worked example

The first of its checks, with simple numbers.

Illustrative values
Defaulted exposures1,200
What the rule then expects

Observed new defaults for the period can then be at most 1,200.

1,200Passes
1,300Fails

A file that reports 1,200 passes. One that reports 1,300 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

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_09.01.b,r0040,c0020,} >= {C_09.01.b,r0040,c0040,}

The next five:

{C_09.01.b,r0141,c0020,} >= {C_09.01.b,r0141,c0040,}{C_09.01.b,r0142,c0020,} >= {C_09.01.b,r0142,c0040,}{C_09.01.b,r0150,c0020,} >= {C_09.01.b,r0150,c0040,}{C_09.01.b,r0160,c0020,} >= {C_09.01.b,r0160,c0040,}{C_09.01.b,r0120,c0020,} >= {C_09.01.b,r0120,c0040,}

And 20 more, the same formula for the other cells it covers.

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.