The rule in plain words

Part of NPEs secured by other funded or unfunded credit protection Breakdown by point in time of granting the first forbearance measure must equal these four added up:

> 2 and <= 3 years after classification as NPE
> 3 and <= 4 years after classification as NPE
> 4 and <= 5 years after classification as NPE
> 5 and <= 6 years after classification as NPE

EBA checks it for six columns: >5 years <=6 years, >6 years <=7 years, >7 years <=8 years, >8 years <=9 years, >9 years and total. That makes six 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.

>7 years <=8 years: Part of NPEs secured by other funded or unfunded credit protection Breakdown by point in time of granting the first forbearance measure = > 2 and <= 3 years after classification as NPE + > 3 and <= 4 years after classification as NPE + > 4 and <= 5 years after classification as NPE + > 5 and <= 6 years after classification as NPE

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03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 C 35.03 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

NPE loss coverage: minimum coverage requirements and exposure values of non-performing forborne exposures that fall under article 47c (6) CRR (NPE lc3) (C 35.03)

Rows

0120Part of NPEs secured by other funded or unfunded credit protection Breakdown by point in time of granting the first forbearance measure
0130> 2 and <= 3 years after classification as NPE
0140> 3 and <= 4 years after classification as NPE
0150> 4 and <= 5 years after classification as NPE
0160> 5 and <= 6 years after classification as NPE

Columns

0060>5 years <=6 years
0070>6 years <=7 years
0080>7 years <=8 years
0090>8 years <=9 years
0100>9 years
0110Total

A worked example

The first of its checks, with simple numbers.

Illustrative values

> 2 and <= 3 years after classification as NPE1,200

> 3 and <= 4 years after classification as NPE800

> 4 and <= 5 years after classification as NPE450

> 5 and <= 6 years after classification as NPE300

Together2,750

What the rule then expects

Part of NPEs secured by other funded or unfunded credit protection Breakdown by point in time of granting the first forbearance measure must then be 2,750.

2,750Passes

2,850Fails

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 writtenShow

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

{C_35.03,r0120,c0080,} = {C_35.03,r0130,c0080,} + {C_35.03,r0140,c0080,} + {C_35.03,r0150,c0080,} + {C_35.03,r0160,c0080,}

The next five:

{C_35.03,r0120,c0090,} = {C_35.03,r0130,c0090,} + {C_35.03,r0140,c0090,} + {C_35.03,r0150,c0090,} + {C_35.03,r0160,c0090,}

{C_35.03,r0120,c0070,} = {C_35.03,r0130,c0070,} + {C_35.03,r0140,c0070,} + {C_35.03,r0150,c0070,} + {C_35.03,r0160,c0070,}

{C_35.03,r0120,c0060,} = {C_35.03,r0130,c0060,} + {C_35.03,r0140,c0060,} + {C_35.03,r0150,c0060,} + {C_35.03,r0160,c0060,}

{C_35.03,r0120,c0110,} = {C_35.03,r0130,c0110,} + {C_35.03,r0140,c0110,} + {C_35.03,r0150,c0110,} + {C_35.03,r0160,c0110,}

{C_35.03,r0120,c0100,} = {C_35.03,r0130,c0100,} + {C_35.03,r0140,c0100,} + {C_35.03,r0150,c0100,} + {C_35.03,r0160,c0100,}

Every COREP own funds rule, by template

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

Part of NPEs secured by other funded or unfunded credit protection Breakdown by point in time of granting the first forbearance measure must equal the sum of its four parts (EBA rule v09737_m)

The rule in plain words

What to do if your filing fails it

The cells it reads

A worked example

Other rules on C 35.03