The rule in plain words
If accumulated impairment is not zero, gross carrying amount must be more than zero.
EBA checks it for 18 rows, from cash balances at central banks and other demand deposits (0075) to credit for consumption (0240). That makes 18 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.
If Of which: Credit for consumption, Accumulated impairment != 0, then Of which: Credit for consumption, Gross carrying amount > 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02The check applies only when its first part holds in your file. When it does, the second part must hold too: fix the second part, or correct the first.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark F 20.04 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
Geographical breakdown of assets by residence of the counterparty (F 20.04)
Rows
- 0075Cash balances at central banks and other demand deposits
- 0080Debt securities
- 0090Central banks
- 0100General governments
- 0110Credit institutions
- 0120Other financial corporations
- 0130Non-financial corporations
- 0140Loans and advances
- 0150Central banks
- 0160General governments
- 0170Credit institutions
- 0180Other financial corporations
- 0190Non-financial corporations
- 0200Of which: Small and medium sized enterprises
- 0210Of which: Loans collateralized by commercial immovable property
- 0220Households
- 0230Of which: Loans collateralized by residential immovable property
- 0240Of which: Credit for consumption
Columns
- 0010Gross carrying amount
- 0031Accumulated impairment
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}.
if ({F_20.04,r0240,c0031,} != 0) then ({F_20.04,r0240,c0010,} > 0) else TrueThe next five:
if ({F_20.04,r0080,c0031,} != 0) then ({F_20.04,r0080,c0010,} > 0) else Trueif ({F_20.04,r0130,c0031,} != 0) then ({F_20.04,r0130,c0010,} > 0) else Trueif ({F_20.04,r0180,c0031,} != 0) then ({F_20.04,r0180,c0010,} > 0) else Trueif ({F_20.04,r0230,c0031,} != 0) then ({F_20.04,r0230,c0010,} > 0) else Trueif ({F_20.04,r0210,c0031,} != 0) then ({F_20.04,r0210,c0010,} > 0) else TrueAnd 12 more, the same formula for the other cells it covers.
Other rules on F 20.04
- None of the 54 values it checks in geographical breakdown of assets can be negative (v4434_s)Warning
- None of the 75 values it checks in geographical breakdown of assets can be negative (v5697_s)Warning
- Accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5698_s)Warning
- Households cannot be less than credit for consumption (v3152_m)Warning
- Non-financial corporations cannot be less than loans collateralized by commercial immovable property (v3151_m)Warning
- Households cannot be less than loans collateralized by residential immovable property (v3150_m)Warning
- Non-performing gross carrying amount cannot be more than gross carrying amount (v3137_m)Warning
- Forborne gross carrying amount cannot be more than gross carrying amount (v3136_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.