The rule in plain words
Financial assets designated at fair value through profit or loss must equal debt securities plus loans and advances.
All the values are in the accumulated negative changes in fair value due to credit risk on non-performing exposures column (0020) of F 04.02.2.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Accumulated negative changes in fair value due to credit risk on non-performing exposures: FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS = Debt securities + Loans and advances
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 F 04.02.2 as reported.
- 06This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Rows
- 0060Debt securities
- 0120Loans and advances
- 0190FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS
Column
- 0020Accumulated negative changes in fair value due to credit risk on non-performing exposures
A worked example
The first of its checks, with simple numbers.
Financial assets designated at fair value through profit or loss must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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}.
{F_04.02.2,r0190,c0020,} = {F_04.02.2,r0060,c0020,} + {F_04.02.2,r0120,c0020,}Other rules on F 04.02.2
- Financial assets designated at fair value through profit or loss must equal the sum of its three parts (v0803_m)Blocking
- Loans and advances must equal the sum of its six parts (v0802_m)Blocking
- Debt securities must equal the sum of its five parts (v0801_m)Blocking
- Equity instruments cannot be less than the sum of three rows (v1220_m)Blocking
- Carrying amount cannot be negative (v5656_s)Warning
- Accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5657_s)Blocking
- Loans and advances, carrying amount must equal the sum of its two parts (v23380_h)Warning
- Equity instruments, carrying amount must equal the sum of its two parts (v23392_h)Warning
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.