The rule in plain words
Each of the values it checks in general governments exposures cannot be more than zero.
EBA checks it for five columns: accumulated impairment, from financial assets at fair value through other comprehensive income or from non-trading non-derivative financial assets measure (0160), accumulated negative changes in fair value due to credit risk, from non-trading financial assets mandatorily at fair value through profit or loss, financial assets designated at fair value thro, and from financial assets at fair value through other comprehensive income or from non-trading non-derivative financial assets measure (0190). And for 24 rows, from total exposures (0010) to [ 10Y - more (0230). That makes 120 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.
of which: from non-trading financial assets mandatorily at fair value through profit or loss, financial assets designated at fair value thro: Central governments <= 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 33.00 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
General governments exposures by country of the counterparty and regulatory approach (Gov) (C 33.00.a)
Rows
- 0010Total exposures
- 0020Exposures under the credit risk framework
- 0030Standardised Approach
- 0040Central governments
- 0050Regional governments or local authorities
- 0060Public sector entities
- 0070International Organisations
- 0075Other general government exposures subject to Standardised Approach
- 0080IRB Approach
- 0090Central governments
- 0100Regional governments or local authorities [Central governments and central banks]
- 0110Regional governments or local authorities
- 0120Public sector entities [Central governments and central banks]
- 0130Public sector entities
- 0140International Organisations [Central governments and central banks]
- 0155Other general government exposures subject to IRB approach
- 0160Exposures under the market risk framework
- 0170[ 0 - 3M [
- 0180[ 3M - 1Y [
- 0190[ 1Y - 2Y [
- 0200[ 2Y - 3Y [
- 0210[ 3Y - 5Y [
- 0220[ 5Y - 10Y [
- 0230[ 10Y - more
Columns
- 0150Accumulated impairment
- 0160of which: from financial assets at fair value through other comprehensive income or from non-trading non-derivative financial assets measure
- 0170Accumulated negative changes in fair value due to credit risk
- 0180of which: from non-trading financial assets mandatorily at fair value through profit or loss, financial assets designated at fair value thro
- 0190of which: from financial assets at fair value through other comprehensive income or from non-trading non-derivative financial assets measure
A worked example
The first of its checks, with simple numbers.
Central governments, from non-trading financial assets mandatorily at fair value through profit or loss, financial assets designated at fair value thro can then be at most 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_33.00.a,r0040,c0180,} <= 0The next five:
{C_33.00.a,r0075,c0190,} <= 0{C_33.00.a,r0030,c0170,} <= 0{C_33.00.a,r0220,c0160,} <= 0{C_33.00.a,r0080,c0150,} <= 0{C_33.00.a,r0050,c0170,} <= 0And 114 more, the same formula for the other cells it covers.
Other rules on C 33.00.a
- None of the 32 values it checks in general governments exposures can be negative (v5888_s)Warning
- None of the 408 values it checks in general governments exposures can be negative (v5857_s)Warning
- Exposures under the credit risk framework must equal the sum of its two parts (v5855_h)Blocking
- If total carrying amount of non-derivative financial assets (net of short positions) is reported, total gross carrying amount of non-derivative financial assets must be reported (v10650_m)Warning
- Total exposures must equal the sum of its seven parts (v10651_m)Warning
- The absolute value of total exposures cannot be less than the absolute value of exposures under the market risk framework (v23366_h)Warning
- The absolute value of total exposures cannot be less than the absolute value of exposures under the credit risk framework (v23620_m)Warning
- The absolute value of total exposures cannot be less than the absolute value of standardised approach plus the absolute value of IRB approach (v903595_h)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.