The rule in plain words
Combined buffer requirement must equal these five worked out:
- Capital conservation buffer
- Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State
- Institution specific countercyclical capital buffer
- Systemic risk buffer
- The larger of global Systemically Important institution buffer and other Systemically Important institution buffer
All the values are in the amount column (0010) of C 04.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Combined Buffer Requirement = Capital conservation buffer + Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State + Institution specific countercyclical capital buffer + Systemic risk buffer + the larger of Global Systemically Important Institution buffer and Other Systemically Important Institution buffer
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C 04.00 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
Capital adequacy - Memorandum items (C 04.00)
Rows
- 0740Combined Buffer Requirement
- 0750Capital conservation buffer
- 0760Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State
- 0770Institution specific countercyclical capital buffer
- 0780Systemic risk buffer
- 0800Global Systemically Important Institution buffer
- 0810Other Systemically Important Institution buffer
Column
- 0010Amount
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_04.00,r0740,c0010,} = {C_04.00,r0750,c0010,} + {C_04.00,r0760,c0010,} + {C_04.00,r0770,c0010,} + {C_04.00,r0780,c0010,} + max({C_04.00,r0800,c0010,},{C_04.00,r0810,c0010,})Other rules on C 04.00
- A check on capital adequacy: Memorandum items (v6295_m)Not run yet
- Total exposures, general credit risk adjustments must equal total gross provisions eligible for inclusion in T2 capital, amount (v6277_q)Warning
- Non-domestic original exposures cannot be more than total original exposures (v4808_m)Warning
- Investments in the capital of financial sector entities where the institution has a significant investment: a lower-limit check on capital adequacy: Memorandum items (row 0580, v4807_m)Warning
- Investments in the capital of financial sector entities where the institution does not have a significant investment: a lower-limit check on capital adequacy: Memorandum items (row 0370, v4806_m)Warning
- Investments in the capital of financial sector entities where the institution has a significant investment: a lower-limit check on capital adequacy: Memorandum items (row 0510, v4805_m)Warning
- Investments in the capital of financial sector entities where the institution does not have a significant investment: a lower-limit check on capital adequacy: Memorandum items (row 0300, v4804_m)Warning
- Investments in the capital of financial sector entities where the institution has a significant investment: a lower-limit check on capital adequacy: Memorandum items (row 0440, v4803_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.