The rule in plain words
Total cannot be negative.
EBA checks it for six columns: carrying amount of financial assets recognised in the balance sheet, liquidity support drawn, fair value of liquidity support drawn, carrying amount of financial liabilities recognised in the balance sheet, nominal amount off-balance sheet exposures given by the reporting entity and nominal amount of loan commitments given. 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.
Of which: nominal amount of loan commitments given: Total >= 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 30.01 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
Interests in unconsolidated structured entities (F 30.01)
Row
- 0010Total
Columns
- 0010Carrying amount of financial assets recognised in the balance sheet
- 0020Of which: liquidity support drawn
- 0030Fair value of liquidity support drawn
- 0040Carrying amount of financial liabilities recognised in the balance sheet
- 0050Nominal amount off-balance sheet exposures given by the reporting entity
- 0060Of which: nominal amount of loan commitments given
A worked example
The first of its checks, with simple numbers.
Total, nominal amount of loan commitments given 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_30.01,r0010,c0060,} >= 0The next five:
{F_30.01,r0010,c0030,} >= 0{F_30.01,r0010,c0040,} >= 0{F_30.01,r0010,c0020,} >= 0{F_30.01,r0010,c0010,} >= 0{F_30.01,r0010,c0050,} >= 0Other rules on F 30.01
- Total, losses incurred by the reporting institution in the current period cannot be more than zero (v5701_s)Warning
- The sum of nine cells cannot be more than total, carrying amount of financial liabilities recognised in the balance sheet (v1020_m)Warning
- Total, liquidity support drawn must equal the sum of its six parts (v1019_m)Warning
- Total, nominal amount off-balance sheet exposures given by the reporting entity must equal the sum of its three parts (v1018_m)Warning
- The sum of three columns cannot be more than total, carrying amount of financial assets recognised in the balance sheet (v1017_m)Warning
- If liquidity support drawn is not zero, fair value of liquidity support drawn cannot be zero (v0998_m)Warning
- Nominal amount of loan commitments given cannot be more than nominal amount off-balance sheet exposures given by the reporting entity (v0997_m)Warning
- Liquidity support drawn cannot be more than carrying amount of financial assets recognised in the balance sheet (v0996_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.