The rule in plain words
For loans and advances: purchased or originated credit-impaired financial assets in F 04.04.1 must equal purchased or originated credit-impaired financial assets in F 18.00.b, non-performing exposures - accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions plus purchased or originated credit-impaired financial assets in F 18.00.b, performing exposures - accumulated impairment and provisions.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_18.00.B: Loans and advances, Non-performing exposures - Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions, of which: purchased or originated credit-impaired financial assets + F_18.00.B: Loans and advances, Performing exposures - Accumulated impairment and provisions, of which: purchased or originated credit-impaired financial assets = F_04.04.1: Loans and advances, Purchased or originated credit-impaired financial assets
What to do if your filing fails it
- 01Open the templates 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- 03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.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 18.00 and F 04.04.1 as reported.
- 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
Breakdown of financial assets by instrument and by counterparty sector: financial assets at amortised cost (F 04.04.1)
Row
- 0070Loans and advances
Column
- 0071Purchased or originated credit-impaired financial assets
Information on performing and non-performing exposures (II) (F 18.00.b)
Row
- 0070Loans and advances
Columns
- 0143Of which: purchased or originated credit-impaired financial assets
- 0952Of which: purchased or originated credit-impaired financial assets
A worked example
The first of its checks, with simple numbers.
Loans and advances, purchased or originated credit-impaired financial assets in F 04.04.1 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}.
sum({F_18.00.b,r0070,c0952,},{F_18.00.b,r0070,c0143,}) = {F_04.04.1,r0070,c0071,}Other rules on F 04.04.1
- Gross carrying amount: loans and advances, purchased or originated credit-impaired financial assets in F 04.04.1 must equal the sum of its two parts (v09616_m)Warning
- Instruments with low credit risk cannot be more than assets without significant increase in credit risk since initial recognition (Stage 1) (v10683_m)Warning
- Each of the 75 values it checks in breakdown of financial assets cannot be more than zero (v8155_s)Warning
- Debt instruments at cost or at amortised cost: a balancing check across information on performing and non-performing exposures, and breakdown of financial assets (F 18.00.b, v8142_m)Warning
- Gross carrying amount: financial assets at amortised cost, credit-impaired assets (Stage 3) must equal the sum of its two parts (v8141_m)Warning
- Small and medium-sized Enterprises, gross carrying amount or nominal amount must equal the sum of its four parts (row 0130, v8140_m)Warning
- Accumulated impairment: financial assets at amortised cost, credit-impaired assets (Stage 3) must equal the sum of its two parts (v7844_m)Warning
- Accumulated impairment: financial assets at amortised cost, assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) must equal the sum of its four parts (v7843_m)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.