The rule in plain words
Allowances for credit-impaired debt instruments (Stage 3) must equal debt securities plus loans and advances.
All the values are in the increases due to origination and acquisition column (0020) 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
- 0360Allowances for credit-impaired debt instruments (Stage 3)
- 0370Debt securities
- 0430Loans and advances
Column
- 0020Increases due to origination and acquisition
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,r0360,c0020,} = {F_12.01.a,r0370,c0020,} + {F_12.01.a,r0430,c0020,}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.