The rule in plain words
Loans and advances cannot be less than project finance loans.
EBA checks it for two columns: gross carrying amount and non-financial corporations. That makes two checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Gross carrying amount: LOANS AND ADVANCES >= of which: project finance loans
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark F 05.01 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Rows
- 0080LOANS AND ADVANCES
- 0130of which: project finance loans
Columns
- 0005Gross carrying amount
- 0050Non-financial corporations
A worked example
The first of its checks, with simple numbers.
Project finance loans can then be at most 1,200.
A file that reports 1,200 passes. One that reports 1,300 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_05.01,r0080,c0005,} >= {F_05.01,r0130,c0005,}The next one:
{F_05.01,r0080,c0050,} >= {F_05.01,r0130,c0050,}Other rules on F 05.01
- Loans and advances must equal the sum of its seven parts (v0875_m)Blocking
- Loans and advances cannot be less than the sum of two rows (v0877_m)Blocking
- Carrying amount: loans and advances must equal the sum of its seven parts (v0874_m)Blocking
- Loans and advances cannot be less than the sum of two rows (v0878_m)Blocking
- Loans and advances, residential immovable property plus loans and advances, commercial immovable property cannot be more than the sum of five columns (v1074_m)Blocking
- An upper-limit check across breakdown of collateral and guarantees, and breakdown of non-trading loans and advances (F 13.01, v1075_m)Warning
- The sum of two columns cannot be more than loans collateralized by immovable property, other financial corporations (v1077_m)Blocking
- The sum of seven columns cannot be more than loans and advances, other financial corporations (v1078_m)Blocking
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.