The rule in plain words
Amount cannot be negative.
EBA checks it for six rows: common equity tier 1 capital, capital instruments eligible as CET1 capital, retained earnings, accumulated other comprehensive income, other reserves and any other eligible funds. That makes six 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.
Retained earnings >= 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 Q 09.02 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
S 09.02 - composition of available own funds CET1 (Q 09.02)
Rows
- 0010COMMON EQUITY TIER 1 CAPITAL
- 0020Capital instruments eligible as CET1 Capital
- 0030Retained earnings
- 0040Accumulated other comprehensive income
- 0050Other reserves
- 0060Any other eligible funds
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
Retained earnings must then be at least 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}.
{Q_09.02,r0030,c0010,} >= 0The next five:
{Q_09.02,r0050,c0010,} >= 0{Q_09.02,r0020,c0010,} >= 0{Q_09.02,r0040,c0010,} >= 0{Q_09.02,r0060,c0010,} >= 0{Q_09.02,r0010,c0010,} >= 0Other rules on Q 09.02
Every MiCA own funds rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.