The rule in plain words
Credit derivatives cannot be negative.
EBA checks it for two rows, all for and advances: loans and non-performing loans. 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.
Of which: credit derivatives: Loans and advances >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark F 13.01 as reported.
- 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Breakdown of collateral and guarantees by loans and advances other than held for trading (F 13.01)
Rows
- 0010Loans and advances
- 0015Of which: Non-performing
Column
- 0055Of which: credit derivatives
A worked example
The first of its checks, with simple numbers.
Loans and advances, credit derivatives must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
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_13.01,r0010,c0055,} >= 0The next one:
{F_13.01,r0015,c0055,} >= 0Other rules on F 13.01
- Financial guarantees received cannot be less than credit derivatives (v09600_m)Warning
- Loans and advances cannot be less than non-performing loans and advances (v09601_m)Warning
- A balancing check across breakdown of collateral and guarantees, and information on performing and non-performing exposures (F 18.00.d, v10674_m)Warning
- Loans and advances, financial guarantees received must equal the sum of its six parts (v10675_m)Warning
- Lending for house purchase plus credit for consumption cannot be more than households (v7789_m)Warning
- The sum of two rows cannot be more than non-financial corporations (v7788_m)Warning
- Small and medium-sized Enterprises (SMEs) cannot be more than non-financial corporations (v7787_m)Warning
- Loans and advances cannot be less than households (v4961_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.