Question ID
2015_1801
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Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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
Annexes I and II, validation rules
Type of submitter
Competent authority
Subject matter
Validation Rule v3688_s (Blocking Rule)
Question

The validation rule does not seem correct as the 'Adjustments to total own funds' (Template C 04.00, column 010, row 870) could also be of a negative value.

Background on the question

As stated in Article 500 Paragraph 4 the ‘amounts of own funds’ have to be ‘fully adjusted to reflect differences in the calculation of own funds under Directive 93/6/EEC and Directive 2000/12/EC as those Directives stood prior to 1 January 2007 and the calculation of own funds under this Regulation deriving from the separate treatments of expected loss and unexpected loss under Part Three, Title II, Chapter 3, of this Regulation.’

We think these differences could also result in ‘negative adjustments to total own funds’, e.g. the own funds after the adjustment are lower than the own funds before the adjustment.

Submission date
Final publishing date
Final answer

According to Q&A 2014_1011, the content of row 870 of template C 04.00 of Annex I to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) is defined as difference between

  • the own funds pursuant to Regulation (EU) No. 575/2013 (CRR) adjusted as required by Article 500 (4) of the CRR (i.e. fully adjusted to reflect differences in the calculation of own funds under Directive 93/6/EEC and Directive 2000/12/EC as those Directives stood prior to 1 January 2007 and the calculation of own funds under this Regulation deriving from the separate treatments of expected loss and unexpected loss under Part Three, Title II, Chapter 3, of CRR) (adjusted own funds) and
  • the own funds pursuant to CRR,

i.e. as adjusted own funds less own funds according to CRR.

Following this calculation rule, the amounts reported in row 870 of template C 04.00 would be positive if the adjusted own funds are higher than the own funds according to CRR.

On the other hand, the figures reported in row 870 will be negative whenever the adjusted own funds are lower than the own funds according to CRR.

Therefore the reference to row 870 will be deleted in validation rule v3688_s.

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

Disclaimer

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