The rule in plain words
None of the values it checks in related parties can be negative.
EBA checks it for five columns: parent and entities with joint control or significance influence, subsidiaries and other entities of the same group, associates and joint ventures, key management of the institution or its parent, and other related parties. And for 13 rows, from selected financial assets (0010) to provisions on non-performing exposures (0132). That makes 65 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.
Parent and entities with joint control or significance influence: Nominal amount of loan commitments, financial guarantees and other commitments given >= 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 31.01 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
Related parties: amounts payable to and amounts receivable from (F 31.01)
Rows
- 0010Selected financial assets
- 0020Equity instruments
- 0030Debt securities
- 0040Loans and advances
- 0050Of which: Non-performing
- 0060Selected financial liabilities
- 0070Deposits
- 0080Debt securities issued
- 0090Nominal amount of loan commitments, financial guarantees and other commitments given
- 0100Of which: Non-performing
- 0110Loan commitments, financial guarantees and other commitments received
- 0120Notional amount of derivatives
- 0132Provisions on non-performing exposures
Columns
- 0010Parent and entities with joint control or significance influence
- 0020Subsidiaries and other entities of the same group
- 0030Associates and joint ventures
- 0040Key management of the institution or its parent
- 0050Other related parties
A worked example
The first of its checks, with simple numbers.
Nominal amount of loan commitments, financial guarantees and other commitments given, parent and entities with joint control or significance influence 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_31.01,r0090,c0010,} >= 0The next five:
{F_31.01,r0100,c0040,} >= 0{F_31.01,r0010,c0040,} >= 0{F_31.01,r0080,c0020,} >= 0{F_31.01,r0060,c0010,} >= 0{F_31.01,r0090,c0020,} >= 0And 59 more, the same formula for the other cells it covers.
Other rules on F 31.01
- Accumulated impairment and accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5702_s)Warning
- Non-performing cannot be more than nominal amount of loan commitments, financial guarantees and other commitments given (v1024_m)Warning
- Non-performing selected financial assets cannot be more than selected financial assets (v1022_m)Warning
- Selected financial assets must equal the sum of its three parts (row 0010, v1021_m)Warning
- Selected financial assets must equal the sum of its three parts (row 0010, v23915_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.