The rule in plain words
For debt securities: carrying amount must equal domestic activities plus non-domestic activities.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_04.04.1: Debt securities, Carrying amount = F_20.01: Debt securities, Domestic activities + F_20.01: Debt securities, Non-domestic activities
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- 03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.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 04.04.1 and F 20.01 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
Breakdown of financial assets by instrument and by counterparty sector: financial assets at amortised cost (F 04.04.1)
Row
- 0010Debt securities
Column
- 0010Carrying amount
Geographical breakdown of assets by location of the activities (F 20.01)
Row
- 0182Debt securities
Columns
- 0010Domestic activities
- 0020Non-domestic activities
A worked example
The first of its checks, with simple numbers.
Debt securities, carrying amount 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. Cells are written as {template, row, column, sheet}.
{F_04.04.1,r0010,c0010,} = {F_20.01,r0182,c0010,} + {F_20.01,r0182,c0020,}Other rules on F 04.04.1
- Loans and advances, carrying amount must equal the sum of its two parts (v23381_h)Warning
- The absolute value of non-financial corporations cannot be less than the absolute value of small and medium-sized Enterprises (v23551_h)Warning
- Financial assets at amortised cost must equal debt securities plus loans and advances (v23856_h)Warning
- Instruments with low credit risk cannot be more than assets without significant increase in credit risk since initial recognition (Stage 1) (v10683_m)Warning
- Gross carrying amount: loans and advances, purchased or originated credit-impaired financial assets in F 04.04.1 must equal the sum of its two parts (v09616_m)Warning
- Accumulated impairment: loans and advances, purchased or originated credit-impaired financial assets in F 04.04.1 must equal the sum of its two parts (v09614_m)Warning
- Each of the 75 values it checks in breakdown of financial assets cannot be more than zero (v8155_s)Warning
- Debt instruments at cost or at amortised cost: a balancing check across information on performing and non-performing exposures, and breakdown of financial assets (F 18.00.b, v8142_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.