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2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Closing balance must equal the sum of its seven parts (EBA rule v09605_m)

A warning in the financial reporting return (FINREP 9), on template F 12.01.a, movements in allowances and provisions for credit losses (I).

Check your file against this ruleWhat to do if it fails

The rule in plain words

Closing balance must equal these seven added up:

  • Opening balance
  • Changes due to update in the institution's methodology for estimation (net)
  • Changes due to modifications without derecognition (net)
  • Decrease due to derecognition repayments and disposals
  • Other adjustments
  • Decrease in allowance account due to write-offs
  • Changes due to change in credit risk (net)

EBA checks it for 16 rows, from allowances for purchased or originated credit-impaired financial assets (0600) to individually measured allowances (0750). That makes 16 checks. A failure names the one that failed.

How the Line4 Check report words itShow

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: collectively measured allowances, Closing balance = of which: collectively measured allowances, Opening balance + of which: collectively measured allowances, Changes due to update in the institution's methodology for estimation (net) + of which: collectively measured allowances, Changes due to modifications without derecognition (net) + of which: collectively measured allowances, Decrease due to derecognition repayments and disposals + of which: collectively measured allowances, Other adjustments + of which: collectively measured allowances, Decrease in allowance account due to write-offs + of which: collectively measured allowances, Changes due to change in credit risk (net)

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark F 12.01 as reported.
  6. 06This 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

Movements in allowances and provisions for credit losses (I) (F 12.01.a)

Rows

  • 0600Allowances for purchased or originated credit-impaired financial assets
  • 0610Debt securities
  • 0620Central banks
  • 0630General governments
  • 0640Credit institutions
  • 0650Other financial corporations
  • 0660Non-financial corporations
  • 0670Loans and advances
  • 0680Central banks
  • 0690General governments
  • 0700Credit institutions
  • 0710Other financial corporations
  • 0720Non-financial corporations
  • 0730Households
  • 0740of which: collectively measured allowances
  • 0750of which: individually measured allowances

Columns

  • 0010Opening balance
  • 0030Decrease due to derecognition repayments and disposals
  • 0040Changes due to change in credit risk (net)
  • 0050Changes due to modifications without derecognition (net)
  • 0070Changes due to update in the institution's methodology for estimation (net)
  • 0080Decrease in allowance account due to write-offs
  • 0090Other adjustments
  • 0100Closing balance

A worked example

The first of its checks, with simple numbers.

Illustrative values
Opening balance1,200
Changes due to update in the institution's methodology for estimation (net)800
Changes due to modifications without derecognition (net)450
Decrease due to derecognition repayments and disposals300
Other adjustments150
Decrease in allowance account due to write-offs100
Changes due to change in credit risk (net)60
Together3,060
What the rule then expects

Closing balance must then be 3,060.

3,060Passes
3,160Fails

A file that reports 3,060 passes. One that reports 3,160 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_12.01.a,r0740,c0100,} = {F_12.01.a,r0740,c0010,} + sum({F_12.01.a,r0740,c0070,},{F_12.01.a,r0740,c0050,},{F_12.01.a,r0740,c0030,},{F_12.01.a,r0740,c0090,},{F_12.01.a,r0740,c0080,},{F_12.01.a,r0740,c0040,})

The next five:

{F_12.01.a,r0710,c0100,} = {F_12.01.a,r0710,c0010,} + sum({F_12.01.a,r0710,c0070,},{F_12.01.a,r0710,c0090,},{F_12.01.a,r0710,c0080,},{F_12.01.a,r0710,c0050,},{F_12.01.a,r0710,c0040,},{F_12.01.a,r0710,c0030,}){F_12.01.a,r0750,c0100,} = {F_12.01.a,r0750,c0010,} + sum({F_12.01.a,r0750,c0050,},{F_12.01.a,r0750,c0090,},{F_12.01.a,r0750,c0030,},{F_12.01.a,r0750,c0080,},{F_12.01.a,r0750,c0040,},{F_12.01.a,r0750,c0070,}){F_12.01.a,r0700,c0100,} = {F_12.01.a,r0700,c0010,} + sum({F_12.01.a,r0700,c0070,},{F_12.01.a,r0700,c0090,},{F_12.01.a,r0700,c0080,},{F_12.01.a,r0700,c0030,},{F_12.01.a,r0700,c0050,},{F_12.01.a,r0700,c0040,}){F_12.01.a,r0640,c0100,} = {F_12.01.a,r0640,c0010,} + sum({F_12.01.a,r0640,c0030,},{F_12.01.a,r0640,c0070,},{F_12.01.a,r0640,c0080,},{F_12.01.a,r0640,c0040,},{F_12.01.a,r0640,c0050,},{F_12.01.a,r0640,c0090,}){F_12.01.a,r0600,c0100,} = {F_12.01.a,r0600,c0010,} + sum({F_12.01.a,r0600,c0090,},{F_12.01.a,r0600,c0080,},{F_12.01.a,r0600,c0070,},{F_12.01.a,r0600,c0040,},{F_12.01.a,r0600,c0050,},{F_12.01.a,r0600,c0030,})

And 10 more, the same formula for the other cells it covers.

Every FINREP 9 rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.