Question ID:
2017_3339
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Supervisory reporting - COREP (incl. IP Losses)
Article:
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph:
5
Disclose name of institution / entity:
No
Type of submitter:
Investment firm
Subject Matter:
Validation rule v4886_m
Question:

A new validation rule v4886_m has been added to taxonomy 2.6 which specifies that : [C 03.00 (r010;030;050;070-120)] {c010} < 1 This rule fails to consider that a firm may hold surplus capital for other purposes (such as Large Exposures) that would cause failure of this rule.

Background on the question:

validation error where surplus capital results in a capital ratio >100%

Date of submission:
12/06/2017
Published as Final Q&A:
22/12/2017
Final Answer:

Validation rule v4886_m checks that the capital ratios reported in template C 03.00 of Annex I to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) are below 1 (= 100%). This relationship is expected to hold for the vast majority of institutions subject to the obligation to report information in accordance with the provisions of the ITS on Supervisory Reporting.

There may be cases where an institution holds excess own funds to the extent that the capital ratios increase above 100%. In those cases, the validation rule can be broken in a justified manner.

Status:
Final Q&A
Answer prepared by:
Answer prepared by the EBA.
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