The rule in plain words
Selected financial assets must equal these three added up:
- Equity instruments
- Debt securities
- Loans and advances
EBA checks it for five columns: parent and entities with joint control or significance influence, subsidiaries and other entities of the same group, associates and joint ventures, key management of the institution or its parent, and other related parties. That makes five 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.
Other related parties: Selected financial assets = Equity instruments + Debt securities + Loans and advances
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 31.01 as reported.
- 06This 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
Related parties: amounts payable to and amounts receivable from (F 31.01)
Rows
- 0010Selected financial assets
- 0020Equity instruments
- 0030Debt securities
- 0040Loans and advances
Columns
- 0010Parent and entities with joint control or significance influence
- 0020Subsidiaries and other entities of the same group
- 0030Associates and joint ventures
- 0040Key management of the institution or its parent
- 0050Other related parties
A worked example
The first of its checks, with simple numbers.
Selected financial assets must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
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_31.01,r0010,c0050,} = {F_31.01,r0020,c0050,} + {F_31.01,r0030,c0050,} + {F_31.01,r0040,c0050,}The next four:
{F_31.01,r0010,c0020,} = {F_31.01,r0020,c0020,} + {F_31.01,r0030,c0020,} + {F_31.01,r0040,c0020,}{F_31.01,r0010,c0010,} = {F_31.01,r0020,c0010,} + {F_31.01,r0030,c0010,} + {F_31.01,r0040,c0010,}{F_31.01,r0010,c0040,} = {F_31.01,r0020,c0040,} + {F_31.01,r0030,c0040,} + {F_31.01,r0040,c0040,}{F_31.01,r0010,c0030,} = {F_31.01,r0020,c0030,} + {F_31.01,r0030,c0030,} + {F_31.01,r0040,c0030,}Other rules on F 31.01
- Accumulated impairment and accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5702_s)Warning
- None of the 65 values it checks in related parties can be negative (v3974_s)Warning
- Non-performing cannot be more than nominal amount of loan commitments, financial guarantees and other commitments given (v1024_m)Warning
- Non-performing selected financial assets cannot be more than selected financial assets (v1022_m)Warning
- Selected financial assets must equal the sum of its three parts (row 0010, v1021_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.