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 nine columns, from accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (0130) to past due > 7 years (0197). That makes nine 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.
Past due > 7 years: 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 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 (II) (F 18.00.b)
Rows
- 0226Non-financial corporations
- 0920Of which: Small and Medium-sized Enterprises
Columns
- 0130Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
- 0150Non-performing exposures - Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
- 0160Unlikely to pay that are not past-due or past-due <= 90 days
- 0170Past due > 90 days <= 180 days
- 0180Past due > 180 days <= 1 year
- 0191Past due > 1 year <= 2 years
- 0192Past due > 2 years <= 5 years
- 0196Past due > 5 years <= 7 years
- 0197Past due > 7 years
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_18.00.b,r0226,c0197,}) >= abs({F_18.00.b,r0920,c0197,})The next five:
abs({F_18.00.b,r0226,c0130,}) >= abs({F_18.00.b,r0920,c0130,})abs({F_18.00.b,r0226,c0170,}) >= abs({F_18.00.b,r0920,c0170,})abs({F_18.00.b,r0226,c0191,}) >= abs({F_18.00.b,r0920,c0191,})abs({F_18.00.b,r0226,c0160,}) >= abs({F_18.00.b,r0920,c0160,})abs({F_18.00.b,r0226,c0192,}) >= abs({F_18.00.b,r0920,c0192,})And 3 more, the same formula for the other cells it covers.
Other rules on F 18.00.b
- The absolute value of non-financial corporations cannot be less than the absolute value of small and medium-sized Enterprises (row 0196, v23558_h)Warning
- Debt instruments at strict LOCOM, or fair value through profit or loss or through equity not subject to impairment must equal the sum of its two parts (v23864_h)Warning
- None of the 198 values it checks in information on performing and non-performing exposures (II) can be negative (v23162_s)Warning
- Each of the 312 values it checks in information on performing and non-performing exposures (II) cannot be more than zero (v23161_s)Warning
- Debt instruments at cost or at amortised cost: performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0005, v12090_m)Warning
- Performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0335, v12053_m)Warning
- Performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0201, v12052_m)Warning
- Households: performing exposures, accumulated impairment and provisions must equal the sum of its three parts (row 0913, v12051_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.