The rule in plain words
Allowances for financial assets without increase in credit risk since initial recognition (Stage 1) must equal debt securities plus loans and advances.
All the values are in the closing balance column (0100) of F 12.01.a.
EBA writes it out twelve times. These words are for the first; the others are the same rule on other cells.
The template it checks
Movements in allowances and provisions for credit losses (I) (F 12.01.a)
Rows
- 0010Allowances for financial assets without increase in credit risk since initial recognition (Stage 1)
- 0020Debt securities
- 0080Loans and advances
Column
- 0100Closing balance
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.a,r0010,c0100,} = {F_12.01.a,r0020,c0100,} + {F_12.01.a,r0080,c0100,}And 11 more, the same formula for the other cells it covers.
Other rules on F 12.01.a
- Allowances for purchased or originated credit-impaired financial assets must equal the sum of its two parts (row 0600, v23848_h)Warning
- Recoveries of previously written-off amounts recorded directly to the statement of profit or loss cannot be negative (v23152_s)Warning
- None of the 138 values it checks in movements in allowances and provisions for credit losses (I) can be negative (v23151_s)Warning
- Increases due to origination and acquisition cannot be more than zero (v23150_s)Warning
- Each of the 207 values it checks in movements in allowances and provisions for credit losses (I) cannot be more than zero (v23149_s)Warning
- Allowances for purchased or originated credit-impaired financial assets must equal the sum of its two parts (row 0600, v09606_m)Warning
- Closing balance must equal the sum of its seven parts (v09605_m)Warning
- Total allowance for debt instruments must equal the sum of its three parts (v09604_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.