The rule in plain words
Financial component, value must equal trading book component, average value plus banking book component, average value.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
C_16.01.A: Financial component, Value = C_16.02: Trading book component, Average Value + C_16.02: Banking book component, Average Value
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark C 16.01 and C 16.02 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
Operational risk - own funds requirements (opr of) (C 16.01.a)
Row
- 0070Financial component
Column
- 0010Value
Operational risk - business indicator component (opr BIC) (C 16.02)
Rows
- 0370Trading book component
- 0420Banking book component
Column
- 0070Average Value
A worked example
The first of its checks, with simple numbers.
Financial component, value must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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. Cells are written as {template, row, column, sheet}.
{C_16.01.a,r0070,c0010,} = {C_16.02,r0370,c0070,} + {C_16.02,r0420,c0070,}Other rules on C 16.01.a
- Services component, value must equal the larger of two values plus the larger of two values (v90321_m)Warning
- Business indicator component and ASA, risk exposure amount cannot be negative (v23216_s)Warning
- Own fund requirements cannot be negative (v23215_s)Warning
- Value cannot be negative (v23214_s)Warning
- Risk exposure amount must equal 12.5 times own fund requirements (v22917_m)Warning
- Interest, leases and dividend component must equal the sum of its two parts (v22916_m)Warning
- Business indicator must equal the sum of its three parts (v22915_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.