EBA · 2024_7025 Rejected question

Validations rule v12726_m for template 5 Banking book - Indicators of potential climate change physical risk: Exposures subject to physical risk

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
449a
Topic
Transparency and Pillar 3
Submitted by
Other
Submitted
2024-02-27

Question

Is validations rule v12726_m incorrect?

Background

Validation rule v12726  is checking for all rows that {c0010} = {c0020} + {c0030} + {c0040} + {c0050}. C0010 is for the entire gross carrying amount for a given geographical area, no matter if totally or partially subject to climate change physical events. While columns C0020 + C0030 + C0040 + C0050 are “Of which exposures sensitive to impact from climate change physical events”. The above is confirmed by DPM 3.3 + ITS 2022_2453. In consequence, it is impossible to be successful with this validation rule, unless 100% of the Gross carrying amount is subject to climate change physical events.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2024_7025

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