The rule in plain words
For non-financial corporations: collateral received on non-performing exposures plus financial guarantees received on non-performing exposures cannot be more than non-performing plus non-performing exposures - accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions.
The headline gives only the kind of check and the template, because the rule is too long to say in a headline. The plain words above say all of it.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_18.00.D: Non-financial corporations, Collateral received on non-performing exposures + F_18.00.C: Non-financial corporations, Financial guarantees received on non-performing exposures <= F_18.00.A: Non-financial corporations, Non-performing + F_18.00.B: Non-financial corporations, Non-performing exposures - Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
What to do if your filing fails it
- 01Open the templates 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 18.00 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
Information on performing and non-performing exposures (I) (F 18.00.a)
Row
- 0060Non-financial corporations
Column
- 0060Non-performing
Information on performing and non-performing exposures (II) (F 18.00.b)
Row
- 0060Non-financial corporations
Column
- 0150Non-performing exposures - Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
Information on performing and non-performing exposures (III) (F 18.00.c)
Row
- 0060Non-financial corporations
Column
- 0210Financial guarantees received on non-performing exposures
Information on performing and non-performing exposures (IV) (F 18.00.d)
Row
- 0060Non-financial corporations
Column
- 0200Collateral received on non-performing exposures
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{F_18.00.d,r0060,c0200,} + {F_18.00.c,r0060,c0210,} <= {F_18.00.a,r0060,c0060,} + {F_18.00.b,r0060,c0150,}Other rules on F 18.00.a
- Debt securities: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0050, v11940_m)Warning
- Debt instruments at cost or at amortised cost: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0070, v11942_m)Warning
- Debt securities: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0040, v11939_m)Warning
- Loans and advances: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0080, v11943_m)Warning
- Debt securities: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0030, v11938_m)Warning
- Loans and advances: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0090, v11944_m)Warning
- Debt securities: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0020, v11937_m)Warning
- Loans and advances: an upper-limit check across information on performing and non-performing exposures (F 18.00.d, F 18.00.c, F 18.00.b, row 0100, v11945_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.