The rule in plain words
Net income must equal interest income (including from leased assets (financial & operating)) plus (interest expenses (including from leased assets (financial&Operating))).
All the values are in the accounting value column (0010) of C 16.02.
EBA writes it out three times. These words are for the first; the others are the same rule on other cells.
The template it checks
Operational risk - business indicator component (opr BIC) (C 16.02)
Rows
- 0020Net Income
- 0030Interest Income (including from leased assets (Financial & Operating))
- 0070(Interest expenses (including from leased assets (Financial&Operating)))
Column
- 0010Accounting Value
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_16.02,r0020,c0010,} = {C_16.02,r0030,c0010,} + {C_16.02,r0070,c0010,}And 2 more, the same formula for the other cells it covers.
Other rules on C 16.02
- Interest income (including from leased assets (financial & operating)) must equal the sum of its three parts (v90305_m)Warning
- (interest expenses (including from leased assets (financial&Operating))) must equal the sum of its three parts (v90306_m)Warning
- Total assets must equal the sum of its five parts (v90307_m)Warning
- Derivatives must equal trading and economic hedges plus hedge accounting (v90308_m)Warning
- Net profit or loss applicable to trading book must equal the sum of its three parts (v90309_m)Warning
- Net profit or loss applicable to banking book must equal the sum of its five parts (v90310_m)Warning
- A calculation check on operational risk (v90311_m)Warning
- A balancing check on operational risk (row 0200, v90313_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.