The rule in plain words
Carrying amount cannot be negative.
EBA checks it for four rows: opening balance, inflows of collateral during the period, inflow due to new collateral obtained by taking possession and closing balance. That makes four 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.
Carrying amount: Inflows of collateral during the period >= 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 25.01 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
Rows
- 0010Opening balance
- 0020Inflows of collateral during the period
- 0030Inflow due to new collateral obtained by taking possession
- 0120Closing balance
Column
- 0120Carrying amount
A worked example
The first of its checks, with simple numbers.
Inflows of collateral during the period, carrying amount 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_25.01.a,r0020,c0120,} >= 0The next three:
{F_25.01.a,r0120,c0120,} >= 0{F_25.01.a,r0030,c0120,} >= 0{F_25.01.a,r0010,c0120,} >= 0Other rules on F 25.01.a
- None of the eight values it checks in collateral obtained can be negative (v10010_s)Warning
- None of the four values it checks in collateral obtained can be negative (v10009_s)Warning
- Each of the ten values it checks in collateral obtained cannot be more than zero (v10013_s)Warning
- None of the ten values it checks in collateral obtained can be negative (v10008_s)Warning
- None of the nine values it checks in collateral obtained can be negative (v10228_s)Warning
- Each of the 20 values it checks in collateral obtained cannot be more than zero (v10229_s)Warning
- Closing balance must equal the sum of its three parts (v8075_m)Warning
- Outflows of collateral during the period must equal the sum of its three parts (v8074_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.