The rule in plain words
Total must equal these four added up:
- Equity instruments
- Specific allowances for credit risk
- General allowances for credit risk
- General allowances for banking risks
All the values are in the value adjustments recorded directly to the statement of profit or loss column (0090) of F 12.00.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Value adjustments recorded directly to the statement of profit or loss: Total = Equity instruments + Specific allowances for credit risk + General allowances for credit risk + General allowances for banking risks
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 12.00 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
Movements in allowances for credit losses and impairment of equity instruments under national GAAP (F 12.00)
Rows
- 0010Equity instruments
- 0330Specific allowances for credit risk
- 0470General allowances for credit risk
- 0500General allowances for banking risks
- 0530Total
Column
- 0090Value adjustments recorded directly to the statement of profit or loss
A worked example
The first of its checks, with simple numbers.
Total must then be 2,750.
A file that reports 2,750 passes. One that reports 2,850 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_12.00,r0530,c0090,} = {F_12.00,r0010,c0090,} + {F_12.00,r0330,c0090,} + {F_12.00,r0470,c0090,} + {F_12.00,r0500,c0090,}Other rules on F 12.00
- Total must equal the sum of its three parts (v0894_m)Blocking
- Closing balance must equal the sum of its six parts (v0889_m)Blocking
- Value adjustments recorded directly to the statement of profit or loss cannot be more than zero (v3936_s)Blocking
- Each of the 72 values it checks in movements in allowances for credit losses and impairment of equity instruments cannot be more than zero (v3937_s)Warning
- None of the 48 values it checks in movements in allowances for credit losses and impairment of equity instruments can be negative (v3938_s)Warning
- Recoveries recorded directly to the statement of profit or loss cannot be negative (v3939_s)Warning
- Amounts written-off directly to the statement of profit or loss cannot be more than zero (v5687_s)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.