The rule in plain words
Capital conservation buffer must equal 0.025 times total risk exposure amount.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
C_04.00: Capital conservation buffer = 0.025 × C_02.00.A: TOTAL RISK EXPOSURE AMOUNT, TREA
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 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 02.00 and C 04.00 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
Capital adequacy - risk exposure amounts (C 02.00.a)
Row
- 0010TOTAL RISK EXPOSURE AMOUNT
Column
- 0010TREA
Capital adequacy - Memorandum items (C 04.00)
Row
- 0750Capital conservation buffer
Column
- 0010Amount
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_04.00,r0750,c0010,} = {C_02.00.a,r0010,c0010,} * 0.025Other rules on C 02.00.a
- Additional stricter prudential requirements cannot be more than internal ratings based approach(IRB) (row 0242, v7481_m)Warning
- Additional stricter prudential requirements cannot be more than internal ratings based approach(IRB) (row 0241, v7480_m)Warning
- Additional stricter prudential requirements cannot be more than standardised approach (SA) (v7479_m)Warning
- Institution specific countercyclical capital buffer, amount must equal institution-specific countercyclical capital buffer rate, percentage times total risk exposure amount, TREA (v10657_m)Warning
- A check on capital adequacy: risk exposure amounts, capital adequacy: ratios and capital adequacy: Memorandum items (C 03.00, C 04.00, v6264_m)Not run yet
- A check on capital adequacy: risk exposure amounts, capital adequacy: ratios and capital adequacy: Memorandum items (C 03.00, C 04.00, v6263_m)Not run yet
- Other items cannot be less than software assets accounted for as intangible assets (v11505_m)Warning
- Other non credit-obligation assets cannot be less than software assets accounted for as intangible assets (v11506_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.