The rule in plain words
The absolute value of non-financial corporations cannot be less than the absolute value of small and medium-sized Enterprises.
EBA checks it for 13 columns, from carrying amount (0010) to accumulated total write-offs (0110). That makes 13 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.
General allowances for banking risk affecting carrying amount: the absolute value of Non-financial corporations >= the absolute value of Of which: Small and Medium-sized Enterprises
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 smaller 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 04.10 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
Rows
- 0170Non-financial corporations
- 0175Of which: Small and Medium-sized Enterprises
Columns
- 0010Carrying amount
- 0015Unimpaired assets
- 0016of which: assets under LOCOM
- 0020Impaired assets
- 0025of which: assets under LOCOM
- 0030Specific allowances for credit risk
- 0040General allowances for credit risk affecting carrying amount
- 0050General allowances for banking risk affecting carrying amount
- 0070of which: assets under LOCOM
- 0080Accumulated negative value adjustments on LOCOM assets - market risk induced
- 0090Accumulated negative value adjustments on LOCOM assets - credit risk induced
- 0100Accumulated partial write-offs
- 0110Accumulated total write-offs
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}.
abs({F_04.10,r0170,c0050,}) >= abs({F_04.10,r0175,c0050,})The next five:
abs({F_04.10,r0170,c0020,}) >= abs({F_04.10,r0175,c0020,})abs({F_04.10,r0170,c0025,}) >= abs({F_04.10,r0175,c0025,})abs({F_04.10,r0170,c0080,}) >= abs({F_04.10,r0175,c0080,})abs({F_04.10,r0170,c0030,}) >= abs({F_04.10,r0175,c0030,})abs({F_04.10,r0170,c0040,}) >= abs({F_04.10,r0175,c0040,})And 7 more, the same formula for the other cells it covers.
Other rules on F 04.10
- Other non-trading non-derivative financial assets, carrying amount must equal the sum of its two parts (v23410_h)Warning
- Debt securities, carrying amount must equal the sum of its two parts (v23402_h)Warning
- Equity instruments, carrying amount must equal the sum of its two parts (v23393_h)Warning
- Loans and advances, carrying amount must equal the sum of its two parts (v23383_h)Warning
- Other non-trading non-derivative financial assets must equal the sum of its three parts (v23898_h)Warning
- Assets under LOCOM, carrying amount must equal the sum of its three parts (v8698_m)Warning
- Each of the 45 values it checks in breakdown of financial assets cannot be more than zero (v5669_s)Warning
- Each of the 80 values it checks in breakdown of financial assets cannot be more than zero (v5668_s)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.