The rule in plain words
Total financial liabilities cannot be negative.
EBA checks it for six columns: held for trading, designated at fair value through profit or loss, amortised cost, trading, at a cost-based method, and hedge accounting. That makes six 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.
Held for trading: Total financial liabilities >= 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 08.01 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Breakdown of financial liabilities by product and by counterparty (b) (F 08.01.b)
Row
- 0450Total financial liabilities
Columns
- 0010Held for trading
- 0020Designated at fair value through profit or loss
- 0030Amortised cost
- 0034Trading
- 0035At a cost-based method
- 0037Hedge accounting
A worked example
The first of its checks, with simple numbers.
Total financial liabilities, held for trading 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_08.01.b,r0450,c0010,} >= 0The next five:
{F_08.01.b,r0450,c0020,} >= 0{F_08.01.b,r0450,c0030,} >= 0{F_08.01.b,r0450,c0034,} >= 0{F_08.01.b,r0450,c0035,} >= 0{F_08.01.b,r0450,c0037,} >= 0Other rules on F 08.01.b
- Total financial liabilities, designated at fair value through profit or loss must equal the sum of its two parts (v23419_h)Warning
- Total financial liabilities, amortised cost must equal the sum of its two parts (v23420_h)Warning
- Total financial liabilities, at a cost-based method must equal the sum of its two parts (v23421_h)Warning
- Total financial liabilities, held for trading must equal the sum of its two parts (v23427_h)Warning
- Total financial liabilities, trading must equal the sum of its two parts (v23429_h)Warning
- Total financial liabilities, hedge accounting must equal the sum of its two parts (v903497_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.