The rule in plain words
Applicable percentage cannot be more than 1.
EBA checks it for five rows: capital instruments and items that do not qualify as minority interests, transitional recognition in consolidated own funds of minority interests, transitional recognition in consolidated own funds of qualifying additional Tier 1 capital, transitional recognition in consolidated own funds of qualifying Tier 2 capital, and additional filters and deductions. That makes five 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.
Applicable percentage: Transitional recognition in consolidated own funds of qualifying Additional Tier 1 capital <= 1
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 05.01 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 - transitional provisions: Summary (C 05.01)
Rows
- 0080Capital instruments and items that do not qualify as minority interests
- 0090Transitional recognition in consolidated own funds of minority interests
- 0091Transitional recognition in consolidated own funds of qualifying Additional Tier 1 capital
- 0092Transitional recognition in consolidated own funds of qualifying Tier 2 capital
- 0430Additional filters and deductions
Column
- 0050Applicable percentage
A worked example
The first of its checks, with simple numbers.
Transitional recognition in consolidated own funds of qualifying additional Tier 1 capital, applicable percentage can then be at most 1.
A file that reports 1 passes. One that reports 1.1 fails, by 0.1.
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_05.01,r0091,c0050,} <= 1The next four:
{C_05.01,r0430,c0050,} <= 1{C_05.01,r0080,c0050,} <= 1{C_05.01,r0090,c0050,} <= 1{C_05.01,r0092,c0050,} <= 1Other rules on C 05.01
- Total adjustments must equal other transitional adjustments (v6022_m)Warning
- Eligible amount without transitional provisions cannot be more than zero (v5016_s)Warning
- If adjustments to CET1 is reported, eligible amount without transitional provisions must be reported (v4889_m)Warning
- Minority interests and equivalents must equal transitional recognition in consolidated own funds of qualifying additional Tier 1 capital (v8651_m)Warning
- Minority interests and equivalents must equal transitional recognition in consolidated own funds of qualifying Tier 2 capital (v8652_m)Warning
- Eligible amount without transitional provisions cannot be negative (v3693_s)Warning
- Adjustments to CET1 cannot be negative (v3690_s)Warning
- Adjustments included in RWAs cannot be negative (v3689_s)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.