The rule in plain words

Loans collateralised by residential immovable property cannot be less than households.

EBA checks it for 17 columns, from accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (0130) to purchased or originated credit-impaired financial assets (0952). That makes 17 checks. A failure names the one that failed.

How the Line4 Check report words itShow

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 > 5 years <= 7 years: Of which: Loans collateralised by residential immovable property >= Households

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

0150Households
0160Of which: Loans collateralised by residential immovable property

Columns

0130Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
0140Performing exposures - Accumulated impairment and provisions
0141Of which: Instruments without significant increase in credit risk since initial recognition (Stage 1)
0142Of which: Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
0143Of which: purchased or originated credit-impaired financial assets
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
0910of which: Past due > 30 days <= 90 days
0950Of which: Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
0951Of which: Credit-impaired instruments (Stage 3)
0952Of which: purchased or originated credit-impaired financial assets

A worked example

The first of its checks, with simple numbers.

Illustrative values

Loans collateralised by residential immovable property1,200

What the rule then expects

Households can then be at most 1,200.

1,200Passes

1,300Fails

A file that reports 1,200 passes. One that reports 1,300 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_18.00.b,r0160,c0196,} >= {F_18.00.b,r0150,c0196,}

The next five:

{F_18.00.b,r0160,c0910,} >= {F_18.00.b,r0150,c0910,}{F_18.00.b,r0160,c0951,} >= {F_18.00.b,r0150,c0951,}{F_18.00.b,r0160,c0170,} >= {F_18.00.b,r0150,c0170,}{F_18.00.b,r0160,c0952,} >= {F_18.00.b,r0150,c0952,}{F_18.00.b,r0160,c0197,} >= {F_18.00.b,r0150,c0197,}

And 11 more, the same formula for the other cells it covers.

Every FINREP 9 rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.

Loans collateralised by residential immovable property cannot be less than households (F 18.00.b, EBA rule v2752_m)

The rule in plain words

What to do if your filing fails it

The cells it reads

A worked example

Other rules on F 18.00.b