The rule in plain words
Non-financial corporations must equal small and medium-sized Enterprises plus non-financial corporations - other than SMEs.
EBA checks it for two columns: gross carrying amount or nominal amount, and non-performing. 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.
F_18.00.A: Non-financial corporations, Non-performing = F_18.00.A: Of which: Small and Medium-sized Enterprises, Non-performing + F_23.02: of which: Non-financial corporations - other than SMEs, Non Performing
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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 F 18.00 and F 23.02 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
Information on performing and non-performing exposures (I) (F 18.00.a)
Rows
- 0120Non-financial corporations
- 0130Of which: Small and Medium-sized Enterprises
Columns
- 0010Gross carrying amount/Nominal amount
- 0060Non-performing
Loans and advances: additional information on gross carrying amounts (F 23.02)
Row
- 0130of which: Non-financial corporations - other than SMEs
Columns
- 0010Gross carrying amount
- 0060Non Performing
A worked example
The first of its checks, with simple numbers.
Non-financial corporations 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, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_18.00.a,r0120,c0060,} = {F_18.00.a,r0130,c0060,} + {F_23.02,r0130,c0060,}The next one:
{F_18.00.a,r0120,c0010,} = {F_18.00.a,r0130,c0010,} + {F_23.02,r0130,c0010,}Other rules on F 18.00.a
- Performing must equal the sum of its three parts (row 0005, v10610_m)Warning
- Non-performing cannot be less than the sum of three columns (v10611_m)Warning
- Cash balances at central banks and other demand deposits: non-performing must equal non-performing gross carrying amount (all sheets added up) (v10679_m)Warning
- A calculation check across information on performing and non-performing exposures, and geographical breakdown of assets (F 20.04, v10680_m)Warning
- Cash balances at central banks and other demand deposits in F 18.00.a must equal cash balances at central banks and other demand deposits in F 20.04 (all sheets added up) (v10681_m)Warning
- Purchased or originated credit-impaired financial assets cannot be more than non-performing (v09598_m)Warning
- The sum of three rows must equal credit for consumption, defaulted gross carrying amount (all sheets added up) (v8697_m)Warning
- The sum of three rows must equal loans collateralized by residential immovable property, defaulted gross carrying amount (all sheets added up) (v8696_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.