The rule in plain words
TSCR: to be made up of CET1 capital must be at least 0.045.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
TSCR: to be made up of CET1 capital >= 0.045
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value outside the limit in these cells.
- 03If the value is a percentage, EBA expects it as a decimal: 12% is reported as 0.12.
- 04EBA compares the values exactly here: there is no rounding tolerance.
- 05It runs only when your filing indicators mark C 03.00 as reported.
- 06This 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
Capital adequacy - ratios (C 03.00)
Row
- 0140TSCR: to be made up of CET1 capital
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
What the rule then expects
TSCR: to be made up of CET1 capital must then be at least 0.045.
0.045Passes
-0.055Fails
A file that reports 0.045 passes. One that reports -0.055 fails, by 0.1.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_03.00,r0140,c0010,} >= 0.045Other rules on C 03.00
- Total SREP capital requirement ratio (TSCR) must be at least 0.08 (v6260_m)Warning
- TSCR: to be made up of Tier 1 must be at least 0.06 (v6262_m)Warning
- If surplus or Deficit of total capital is negative, total capital ratio cannot be more than 0.08 (v6257_m)Blocking
- OCR and Pillar 2 guidance (P2G) cannot be less than overall capital requirement ratio (OCR) (v6265_m)Warning
- If total capital ratio is at most 0.08, surplus or Deficit of total capital must be negative (v6256_m)Warning
- OCR and P2G: to be made up of CET1 capital cannot be less than OCR: to be made up of CET1 capital (v6266_m)Warning
- If T1 capital ratio is at most 0.06, surplus or Deficit of T1 capital cannot be more than zero (v6255_m)Warning
- OCR and P2G: to be made up of Tier 1 capital cannot be less than OCR: to be made up of Tier 1 (v6267_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.