The rule in plain words
Loans and advances to group entities not within the prudential scope of consolidation (excl. reverse repurchase loans) cannot be more than loans and advances to non-financial corporations (excl. reverse repurchase loans) plus loans and advances to other financial corporations (excl. reverse repurchase loans).
EBA checks it for four columns: actual current position, planned Year 1 Position, planned Year 2 Position and planned Year 3 Position. That makes four 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.
Actual current position: Loans and advances to group entities not within the prudential scope of consolidation (excl. reverse repurchase loans) <= Loans and advances to non-financial corporations (excl. reverse repurchase loans) + Loans and advances to other financial corporations (excl. reverse repurchase loans)
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark P 01.01 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
Assets (P 01.01)
Rows
- 100Loans and advances to non-financial corporations (excl. reverse repurchase loans)
- 190Loans and advances to other financial corporations (excl. reverse repurchase loans)
- 240Loans and advances to group entities not within the prudential scope of consolidation (excl. reverse repurchase loans)
Columns
- 010Actual current position
- 030Planned Year 1 Position
- 040Planned Year 2 Position
- 050Planned Year 3 Position
A worked example
The first of its checks, with simple numbers.
Loans and advances to group entities not within the prudential scope of consolidation (excl. reverse repurchase loans) can then be at most 2,000.
A file that reports 2,000 passes. One that reports 2,100 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
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}.
{P_01.01,r240,c010,} <= {P_01.01,r100,c010,} + {P_01.01,r190,c010,}The next three:
{P_01.01,r240,c050,} <= {P_01.01,r100,c050,} + {P_01.01,r190,c050,}{P_01.01,r240,c030,} <= {P_01.01,r100,c030,} + {P_01.01,r190,c030,}{P_01.01,r240,c040,} <= {P_01.01,r100,c040,} + {P_01.01,r190,c040,}Other rules on P 01.01
- Total assets must equal the sum of its twelve parts (v4105_m)Warning
- None of the 140 values it checks in assets can be negative (v4390_s)Warning
- Each of the 24 values it checks in assets cannot be more than zero (v4391_s)Warning
- Domestic activities must equal the sum of its two parts (v5918_h)Warning
- If loans and advances to households (exc reverse repurchase loans) is more than zero, domestic activities must be more than zero (v6217_m)Warning
- Loans and advances to households (exc reverse repurchase loans): if domestic activities is more than zero, accumulated impairment, accumulated negative changes in fair value due to credit risk for domestic activities (memo item) must be negative (v6219_m)Warning
- If loans and advances to non-financial corporations (excl. reverse repurchase loans) is more than zero, domestic activities must be more than zero (v6220_m)Warning
- Loans and advances to non-financial corporations (excl. reverse repurchase loans): if domestic activities is more than zero, accumulated impairment, accumulated negative changes in fair value due to credit risk for domestic activities (memo item) must be negative (v6222_m)Warning
Checks like this one, run at the point of submission, are the first step to real-time supervision.