The rule in plain words
Non-performing selected financial assets cannot be more than selected financial assets.
EBA checks it for five columns: parent and entities with joint control or significance influence, subsidiaries and other entities of the same group, associates and joint ventures, key management of the institution or its parent, and other related parties. That makes five 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.
Parent and entities with joint control or significance influence: Of which: Non-performing <= Selected financial assets
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark F 31.01 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
Related parties: amounts payable to and amounts receivable from (F 31.01)
Rows
- 0010Selected financial assets
- 0050Of which: Non-performing
Columns
- 0010Parent and entities with joint control or significance influence
- 0020Subsidiaries and other entities of the same group
- 0030Associates and joint ventures
- 0040Key management of the institution or its parent
- 0050Other related parties
A worked example
The first of its checks, with simple numbers.
Selected financial assets must then be at least 1,200.
A file that reports 1,200 passes. One that reports 1,100 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_31.01,r0050,c0010,} <= {F_31.01,r0010,c0010,}The next four:
{F_31.01,r0050,c0020,} <= {F_31.01,r0010,c0020,}{F_31.01,r0050,c0050,} <= {F_31.01,r0010,c0050,}{F_31.01,r0050,c0040,} <= {F_31.01,r0010,c0040,}{F_31.01,r0050,c0030,} <= {F_31.01,r0010,c0030,}Other rules on F 31.01
- Selected financial assets must equal the sum of its three parts (row 0010, v1021_m)Warning
- Non-performing cannot be more than nominal amount of loan commitments, financial guarantees and other commitments given (v1024_m)Warning
- None of the 65 values it checks in related parties can be negative (v3974_s)Warning
- Accumulated impairment and accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5702_s)Warning
- Selected financial assets must equal the sum of its three parts (row 0010, v23915_h)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.