The rule in plain words
These eight added up must equal financial assets at amortised cost, current period plus financial assets at fair value through other comprehensive income, current period:
- Loans and advances, gains or losses on derecognition of debt instruments (under allowances for financial assets without increase in credit risk since initial recognition (Stage 1))
- Loans and advances, gains or losses on derecognition of debt instruments (under allowances for purchased or originated credit-impaired financial assets)
- Loans and advances, gains or losses on derecognition of debt instruments (under allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2))
- Debt securities, gains or losses on derecognition of debt instruments (under allowances for credit-impaired debt instruments (Stage 3))
- Debt securities, gains or losses on derecognition of debt instruments (under allowances for purchased or originated credit-impaired financial assets)
- Debt securities, gains or losses on derecognition of debt instruments (under allowances for financial assets without increase in credit risk since initial recognition (Stage 1))
- Debt securities, gains or losses on derecognition of debt instruments (under allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2))
- Loans and advances, gains or losses on derecognition of debt instruments (under allowances for credit-impaired debt instruments (Stage 3))
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_12.01.A: Allowances for financial assets without increase in credit risk since initial recognition (Stage 1), loans and advances, Gains or losses on derecognition of debt instruments + F_12.01.A: Allowances for purchased or originated credit-impaired financial assets, loans and advances, Gains or losses on derecognition of debt instruments + F_12.01.A: Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2), loans and advances, Gains or losses on derecognition of debt instruments + F_12.01.A: Allowances for credit-impaired debt instruments (Stage 3), debt securities, Gains or losses on derecognition of debt instruments + F_12.01.A: Allowances for purchased or originated credit-impaired financial assets, debt securities, Gains or losses on derecognition of debt instruments + F_12.01.A: Allowances for financial assets without increase in credit risk since initial recognition (Stage 1), debt securities, Gains or losses on derecognition of debt instruments + F_12.01.A: Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2), debt securities, Gains or losses on derecognition of debt instruments + F_12.01.A: Allowances for credit-impaired debt instruments (Stage 3), loans and advances, Gains or losses on derecognition of debt instruments = F_02.00: Financial assets at amortised cost + F_02.00: Financial assets at fair value through other comprehensive income
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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 12.01 and F 02.00 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
Statement of profit or loss (F 02.00)
Rows
- 0231Financial assets at fair value through other comprehensive income
- 0241Financial assets at amortised cost
Column
- 0010Current period
Movements in allowances and provisions for credit losses (I) (F 12.01.a)
Rows
- 0020Debt securities
- 0080Loans and advances
- 0190Debt securities
- 0250Loans and advances
- 0370Debt securities
- 0430Loans and advances
- 0610Debt securities
- 0670Loans and advances
Column
- 0125Gains or losses on derecognition of debt instruments
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
sum({F_12.01.a,r0080,c0125,},{F_12.01.a,r0670,c0125,},{F_12.01.a,r0250,c0125,},{F_12.01.a,r0370,c0125,},{F_12.01.a,r0610,c0125,},{F_12.01.a,r0020,c0125,},{F_12.01.a,r0190,c0125,},{F_12.01.a,r0430,c0125,}) = sum({F_02.00,r0241,c0010,},{F_02.00,r0231,c0010,})Other rules on F 02.00
- Cash contributions to resolution funds and deposit guarantee schemes, current period must equal the sum of its two parts (v09886_h)Warning
- Current period must be reported (v6301_m)Warning
- Modification gains or losses, net must equal the sum of its two parts (v5024_m)Warning
- Interest expense on assets, current period must equal the sum of its three parts (v4720_m)Warning
- Interest income on liabilities must equal the sum of its four parts (v4719_m)Warning
- Total operating income, net must equal a calculation over 18 rows (v1699_m)Warning
- The sum of five columns cannot be more than fee and commission expenses, current period (v1376_m)Warning
- The sum of five columns cannot be more than fee and commission income, current period (v1375_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.