The rule in plain words
For assets excluded from the numerator for GAR calculation (covered in the denominator) but included in the numerator and denominator of the BTAR: total gross carrying amount cannot be less than towards taxonomy relevant sectors (taxonomy-eligible).
EBA checks it for twelve rows, from total GAR assets (0010) to total BTAR assets (0120). That makes twelve 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.
EU Non-financial corporations (not subject to NFRD disclosure obligations), Total gross carrying amount >= EU Non-financial corporations (not subject to NFRD disclosure obligations), Of which towards taxonomy relevant sectors (Taxonomy-eligible)
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark D 09.01 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
Mitigating actions: assets for the calculation of BTAR (D 09.01)
Rows
- 0010Total GAR Assets
- 0020EU Non-financial corporations (not subject to NFRD disclosure obligations)
- 0030Loans and advances
- 0040Of which loans collateralised by commercial immovable property
- 0050Of which building renovation loans
- 0060Debt securities
- 0070Equity instruments
- 0080Non-EU Non-financial corporations (not subject to NFRD disclosure obligations)
- 0090Loans and advances
- 0100Debt securities
- 0110Equity instruments
- 0120TOTAL BTAR ASSETS
Columns
- 0010Total gross carrying amount
- 0020Of which towards taxonomy relevant sectors (Taxonomy-eligible)
A worked example
The first of its checks, with simple numbers.
Towards taxonomy relevant sectors (taxonomy-eligible) can then be at most 1,200.
A file that reports 1,200 passes. One that reports 1,300 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
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}.
{D_09.01,r0020,c0010,} >= {D_09.01,r0020,c0020,}The next five:
{D_09.01,r0040,c0010,} >= {D_09.01,r0040,c0020,}{D_09.01,r0050,c0010,} >= {D_09.01,r0050,c0020,}{D_09.01,r0010,c0010,} >= {D_09.01,r0010,c0020,}{D_09.01,r0120,c0010,} >= {D_09.01,r0120,c0020,}{D_09.01,r0100,c0010,} >= {D_09.01,r0100,c0020,}And 6 more, the same formula for the other cells it covers.
Other rules on D 09.01
- Total assets must equal the sum of its two parts (v89361_m)Warning
- Non-EU non-financial corporations (not subject to NFRD disclosure obligations): total gross carrying amount cannot be less than towards taxonomy relevant sectors (taxonomy-eligible) (v89363_m)Warning
- Total assets in the denominator must equal the sum of its five parts (v89360_m)Warning
- EU non-financial corporations (not subject to NFRD disclosure obligations): total gross carrying amount cannot be less than towards taxonomy relevant sectors (taxonomy-eligible) (v89364_m)Warning
- Total BTAR assets must equal the sum of its three parts (v89359_m)Warning
- Environmentally sustainable (taxonomy-aligned) cannot be less than specialised lending (v89365_m)Warning
- Environmentally sustainable (taxonomy-aligned): non-EU non-financial corporations (not subject to NFRD disclosure obligations) must equal the sum of its three parts (v89358_m)Warning
- Environmentally sustainable (taxonomy-aligned) cannot be less than transitional (v89366_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.