The rule in plain words
None of the values it checks in derecognition and financial liabilities associated with transferred financial assets can be negative.
EBA checks it for three columns: carrying amount, securitizations and repurchase agreements. And for 40 rows, from financial assets held for trading (0010) to equity instruments (0200). That makes 120 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.
Of which: repurchase agreements: Loans and advances >= 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 15.00 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
Rows
- 0010Financial assets held for trading
- 0020Equity instruments
- 0030Debt securities
- 0040Loans and advances
- 0041Trading financial assets
- 0042Equity instruments
- 0043Debt securities
- 0044Loans and advances
- 0045Non-trading financial assets mandatorily at fair value through profit or loss
- 0046Equity instruments
- 0047Debt securities
- 0048Loans and advances
- 0050Financial assets designated at fair value through profit or loss
- 0060Equity instruments
- 0070Debt securities
- 0080Loans and advances
- 0091Financial assets at fair value through other comprehensive income
- 0092Equity instruments
- 0093Debt securities
- 0094Loans and advances
- 0121Non-trading non-derivative financial assets measured at fair value through profit or loss
- 0122Equity instruments
- 0123Debt securities
- 0124Loans and advances
- 0125Non-trading non-derivative financial assets measured at fair value to equity
- 0126Equity instruments
- 0127Debt securities
- 0128Loans and advances
- 0131Financial assets at amortised cost
- 0132Debt securities
- 0133Loans and advances
- 0181Non-trading non-derivative financial assets measured at a cost-based method
- 0182Debt securities
- 0183Loans and advances
- 0184Other non-trading non-derivative financial assets
- 0185Equity instruments
- 0186Debt securities
- 0187Loans and advances
- 0190Total
- 0200Equity instruments
Columns
- 0010Carrying amount
- 0020Of which: securitizations
- 0030Of which: repurchase agreements
A worked example
The first of its checks, with simple numbers.
Loans and advances, repurchase agreements 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_15.00.a,r0128,c0030,} >= 0The next five:
{F_15.00.a,r0186,c0010,} >= 0{F_15.00.a,r0046,c0010,} >= 0{F_15.00.a,r0041,c0020,} >= 0{F_15.00.a,r0010,c0030,} >= 0{F_15.00.a,r0042,c0010,} >= 0And 114 more, the same formula for the other cells it covers.
Other rules on F 15.00.a
- Total, principal amount outstanding of transferred financial assets entirely derecognised for which the institution retains servicing rights cannot be negative (v3946_s)Warning
- Amounts derecognised for capital purposes cannot be negative (v3945_s)Warning
- None of the 40 values it checks in derecognition and financial liabilities associated with transferred financial assets can be negative (v3944_s)Warning
- Transferred financial assets recognized to the extent of the institutions continuing involvement: non-trading financial assets mandatorily at fair value through profit or loss must equal the sum of its three parts (v5121_m)Warning
- Non-trading financial assets mandatorily at fair value through profit or loss must equal the sum of its two parts (v5122_m)Warning
- Total must equal the sum of its five parts (v1206_m)Warning
- Total must equal the sum of its ten parts (v1204_m)Warning
- Other non-trading non-derivative financial assets must equal the sum of its three parts (v1203_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.