The rule in plain words
Each of the values it checks in assets cannot be more than zero.
EBA checks it for four columns: actual current position, planned Year 1 Position, planned Year 2 Position and planned Year 3 Position. And for six rows: accumulated impairment, accumulated negative changes in fair value due to credit risk for domestic activities (memo item) (041), accumulated impairment, accumulated negative changes in fair value due to credit risk for other EEA countries activities (memo item) (092), accumulated impairment, accumulated negative changes in fair value due to credit risk for non-EEA countries activities (memo item) (097), accumulated impairment, accumulated negative changes in fair value due to credit risk for domestic activities (memo item) (111), accumulated impairment, accumulated negative changes in fair value due to credit risk for other EEA countries activities (memo item) (162) and accumulated impairment, accumulated negative changes in fair value due to credit risk for non-EEA countries activities (memo item) (168). That makes 24 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.
Planned Year 1 Position: Accumulated impairment, accumulated negative changes in fair value due to credit risk for non-EEA countries activities (memo item) <= 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 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
- 041Accumulated impairment, accumulated negative changes in fair value due to credit risk for domestic activities (memo item)
- 092Accumulated impairment, accumulated negative changes in fair value due to credit risk for other EEA countries activities (memo item)
- 097Accumulated impairment, accumulated negative changes in fair value due to credit risk for non-EEA countries activities (memo item)
- 111Accumulated impairment, accumulated negative changes in fair value due to credit risk for domestic activities (memo item)
- 162Accumulated impairment, accumulated negative changes in fair value due to credit risk for other EEA countries activities (memo item)
- 168Accumulated impairment, accumulated negative changes in fair value due to credit risk for non-EEA countries activities (memo item)
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.
Accumulated impairment, accumulated negative changes in fair value due to credit risk for non-EEA countries activities (memo item), planned Year 1 Position can then be at most 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}.
{P_01.01,r097,c030,} <= 0The next five:
{P_01.01,r111,c040,} <= 0{P_01.01,r097,c040,} <= 0{P_01.01,r168,c030,} <= 0{P_01.01,r041,c050,} <= 0{P_01.01,r111,c010,} <= 0And 18 more, the same formula for the other cells it covers.
Other rules on P 01.01
- None of the 140 values it checks in assets can be negative (v4390_s)Warning
- Total assets must equal the sum of its twelve parts (v4105_m)Warning
- Loans and advances to group entities not within the prudential scope of consolidation (excl. reverse repurchase loans) cannot be more than the sum of two rows (v4104_m)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.