The rule in plain words
Provisions must equal these seven added up:
- Funds for general banking risks [if presented within liabilities]
- Pension and other post employment defined benefit obligations
- Other long term employee benefits
- Restructuring
- Pending legal issues and tax litigation
- Commitments and guarantees given
- Other provisions
All the values are in the carrying amount column (0010) of F 01.02.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Provisions = Funds for general banking risks [if presented within liabilities] + Pension and other post employment defined benefit obligations + Other long term employee benefits + Restructuring + Pending legal issues and tax litigation + Commitments and guarantees given + Other provisions
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 01.02 as reported.
- 06This 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
Balance sheet statement: liabilities (F 01.02)
Rows
- 0170Provisions
- 0175Funds for general banking risks [if presented within liabilities]
- 0180Pension and other post employment defined benefit obligations
- 0190Other long term employee benefits
- 0200Restructuring
- 0210Pending legal issues and tax litigation
- 0220Commitments and guarantees given
- 0230Other provisions
Column
- 0010Carrying amount
A worked example
The first of its checks, with simple numbers.
Provisions must then be 3,060.
A file that reports 3,060 passes. One that reports 3,160 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. Cells are written as {template, row, column, sheet}.
{F_01.02,r0170,c0010,} = {F_01.02,r0175,c0010,} + {F_01.02,r0180,c0010,} + {F_01.02,r0190,c0010,} + {F_01.02,r0200,c0010,} + {F_01.02,r0210,c0010,} + {F_01.02,r0220,c0010,} + {F_01.02,r0230,c0010,}Other rules on F 01.02
- If financial liabilities held for trading, carrying amount is more than zero, the sum of three columns must be more than zero (v4966_m)Warning
- If financial liabilities designated at fair value through profit or loss, carrying amount is more than zero, the sum of three columns must be more than zero (v4967_m)Warning
- The sum of three columns cannot be more than trading financial liabilities, carrying amount (v5092_m)Warning
- Derivatives: level 3 plus level 1 plus level 2 cannot be more than carrying amount (v5093_m)Warning
- Short positions: level 2 plus level 3 plus level 1 cannot be more than carrying amount (v5094_m)Warning
- Deposits: level 3 plus level 1 plus level 2 cannot be more than carrying amount (v5095_m)Warning
- The sum of three columns cannot be more than debt securities issued, carrying amount (v5096_m)Warning
- The sum of three columns cannot be more than other financial liabilities, carrying amount (v5097_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.