The rule in plain words
Decrease due to derecognition repayments and disposals cannot be more than zero.
EBA checks it for five rows: commitments and financial guarantees given (Stage 1), commitments and financial guarantees given (Stage 2), commitments and financial guarantees given (Stage 3), commitments and financial guarantees given (Purchased or originated credit-impaired), and total provisions on commitments and financial guarantees given. 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.
Decrease due to derecognition repayments and disposals: Commitments and financial guarantees given (Purchased or originated credit-impaired) <= 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 12.01 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
Movements in allowances and provisions for credit losses (II) (F 12.01.b)
Rows
- 0530Commitments and financial guarantees given (Stage 1)
- 0540Commitments and financial guarantees given (Stage 2)
- 0560Commitments and financial guarantees given (Stage 3)
- 0565Commitments and financial guarantees given (Purchased or originated credit-impaired)
- 0570Total provisions on commitments and financial guarantees given
Column
- 0030Decrease due to derecognition repayments and disposals
A worked example
The first of its checks, with simple numbers.
Commitments and financial guarantees given (Purchased or originated credit-impaired), decrease due to derecognition repayments and disposals can then be at most 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_12.01.b,r0565,c0030,} <= 0The next four:
{F_12.01.b,r0530,c0030,} <= 0{F_12.01.b,r0560,c0030,} <= 0{F_12.01.b,r0540,c0030,} <= 0{F_12.01.b,r0570,c0030,} <= 0Other rules on F 12.01.b
- Each of the twelve values it checks in movements in allowances and provisions for credit losses (II) cannot be more than zero (v23154_s)Warning
- None of the twelve values it checks in movements in allowances and provisions for credit losses (II) can be negative (v23155_s)Warning
- None of the ten values it checks in movements in allowances and provisions for credit losses (II) can be negative (v23156_s)Warning
- Total provisions on commitments and financial guarantees given must equal the sum of its four parts (v5052_m)Blocking
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.