The rule in plain words
None of the values it checks in breakdown of financial assets can be negative.
EBA checks it for four columns: carrying amount, unimpaired assets, impaired assets and assets under LOCOM. And for 20 rows, from equity instruments (0010) to other non-trading non-derivative financial assets (0190). That makes 80 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.
Carrying amount: Credit institutions >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark F 04.10 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
Rows
- 0010Equity instruments
- 0020of which: unquoted
- 0030of which: credit institutions
- 0040of which: other financial corporations
- 0050of which: non-financial corporations
- 0060Debt securities
- 0070Central banks
- 0080General governments
- 0090Credit institutions
- 0100Other financial corporations
- 0110Non-financial corporations
- 0120Loans and advances
- 0130Central banks
- 0140General governments
- 0150Credit institutions
- 0160Other financial corporations
- 0170Non-financial corporations
- 0175Of which: Small and Medium-sized Enterprises
- 0180Households
- 0190Other non-trading non-derivative financial assets
Columns
- 0010Carrying amount
- 0015Unimpaired assets
- 0020Impaired assets
- 0070of which: assets under LOCOM
A worked example
The first of its checks, with simple numbers.
Credit institutions, carrying amount must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
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_04.10,r0090,c0010,} >= 0The next five:
{F_04.10,r0130,c0070,} >= 0{F_04.10,r0120,c0020,} >= 0{F_04.10,r0170,c0015,} >= 0{F_04.10,r0030,c0010,} >= 0{F_04.10,r0130,c0015,} >= 0And 74 more, the same formula for the other cells it covers.
Other rules on F 04.10
- Debt securities must equal the sum of its five parts (v5043_m)Warning
- Loans and advances must equal the sum of its six parts (v5044_m)Warning
- Carrying amount minus assets under LOCOM, carrying amount must equal a calculation over seven columns (v5430_m)Warning
- Carrying amount minus assets under LOCOM, carrying amount must equal a calculation over four columns (v5431_m)Warning
- Each of the 80 values it checks in breakdown of financial assets cannot be more than zero (v5668_s)Warning
- Each of the 45 values it checks in breakdown of financial assets cannot be more than zero (v5669_s)Warning
- Assets under LOCOM, carrying amount must equal the sum of its three parts (v8698_m)Warning
- Loans and advances, carrying amount must equal the sum of its two parts (v23383_h)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.