The rule in plain words
Own funds must equal these three added up:
- Common equity Tier 1 capital
- Additional Tier 1 capital
- Tier 2 capital
All the values are in the outstanding amount column (0090) of Z 02.00.a.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Outstanding Amount: Own funds = Common Equity Tier 1 Capital + Additional Tier 1 capital + Tier 2 Capital
What to do if your filing fails it
- 01Open the template 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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 Z 02.00 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
Liability structure (LIAB) (Z 02.00.a)
Rows
- 0500Own funds
- 0510Common Equity Tier 1 Capital
- 0520Additional Tier 1 capital
- 0530Tier 2 Capital
Column
- 0090Outstanding Amount
A worked example
The first of its checks, with simple numbers.
Own funds must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 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}.
{Z_02.00.a,r0500,c0090,} = {Z_02.00.a,r0510,c0090,} + {Z_02.00.a,r0520,c0090,} + {Z_02.00.a,r0530,c0090,}Other rules on Z 02.00.a
- None of the 108 values it checks in liability structure (LIAB) can be negative (v903656_s)Warning
- Tier 2 capital: outstanding amount cannot be negative (v903572_s)Warning
- None of the 112 values it checks in liability structure (LIAB) can be negative (v903571_s)Warning
- Liabilities not excluded from bail-in: outstanding amount cannot be negative (v903484_s)Warning
- Liabilities excluded from bail-in, liabilities governed by the law of a third country, excluding intragroup: outstanding amount cannot be negative (v90287_s)Warning
- None of the 106 values it checks in liability structure (LIAB) can be negative (v90285_s)Warning
- Liabilities excluded from bail-in, general governments & central banks: outstanding amount cannot be negative (v90284_s)Warning
- Structured notes: outstanding amount cannot be negative (v90282_s)Warning
Every RESOL1 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.