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

EBA Q&A 2024_7025 · Rejected question

Question

Is validations rule v12726_m incorrect?

Background on the question

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.

Answer

This question has been rejected because the matter it refers to has already been identified and was considered in the last release of the validation rules. This validation rule is now deactivated.

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