The rule in plain words
General allowances for banking risks must equal debt securities plus loans and advances.
All the values are in the decreases due to amounts reversed for estimated loan losses during the period column (0030) of F 12.00.
EBA writes it out seven times. These words are for the first; the others are the same rule on other cells.
The template it checks
Movements in allowances for credit losses and impairment of equity instruments under national GAAP (F 12.00)
Rows
- 0500General allowances for banking risks
- 0510Debt securities
- 0520Loans and advances
Column
- 0030Decreases due to amounts reversed for estimated loan losses during the period
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EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_12.00,r0500,c0030,} = {F_12.00,r0510,c0030,} + {F_12.00,r0520,c0030,}And 6 more, the same formula for the other cells it covers.
Other rules on F 12.00
- Amounts written-off directly to the statement of profit or loss cannot be more than zero (v5687_s)Blocking
- Recoveries recorded directly to the statement of profit or loss cannot be negative (v3939_s)Warning
- None of the 48 values it checks in movements in allowances for credit losses and impairment of equity instruments can be negative (v3938_s)Warning
- Each of the 72 values it checks in movements in allowances for credit losses and impairment of equity instruments cannot be more than zero (v3937_s)Warning
- Value adjustments recorded directly to the statement of profit or loss cannot be more than zero (v3936_s)Blocking
- Total must equal the sum of its four parts (v0895_m)Blocking
- Total must equal the sum of its three parts (v0894_m)Blocking
- Closing balance must equal the sum of its six parts (v0889_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.