The rule in plain words
Services component, value must equal the larger of other operating income, average value and other operating expenses, average value plus the larger of fee and commission income component, average value and fee and commission expenses 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: Services component, Value = the larger of C_16.02: Other operating income, Average Value and C_16.02: (Other operating expenses), Average Value + the larger of C_16.02: Fee and commission income component, Average Value and C_16.02: (Fee and commission expenses component), Average Value
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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 16.01 and C 16.02 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
Operational risk - own funds requirements (opr of) (C 16.01.a)
Row
- 0060Services component
Column
- 0010Value
Operational risk - business indicator component (opr BIC) (C 16.02)
Rows
- 0220Other operating income
- 0260(Other operating expenses)
- 0310Fee and commission income component
- 0340(Fee and commission expenses component)
Column
- 0070Average Value
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_16.01.a,r0060,c0010,} = max({C_16.02,r0220,c0070,},{C_16.02,r0260,c0070,}) + max({C_16.02,r0310,c0070,},{C_16.02,r0340,c0070,})Other rules on C 16.01.a
- Financial component, value must equal the sum of its two parts (v90320_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.