The rule in plain words
Loans and advances, accumulated impairment plus loans and advances, accumulated negative changes in fair value due to credit risk on non-performing exposures must equal these three added up, all for non-financial corporations:
- Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (row 0120)
- Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (row 0196)
- Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (row 0226)
The headline gives only the kind of check and the template, because the rule is too long to say in a headline. The plain words above say all of it.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_06.01: Loans and advances, Accumulated impairment + F_06.01: Loans and advances, Accumulated negative changes in fair value due to credit risk on non-performing exposures = F_18.00.B: Loans and advances, non-financial corporations, Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (row 0120) + F_18.00.B: Loans and advances, non-financial corporations, Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (row 0196) + F_18.00.B: Loans and advances, non-financial corporations, Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions (row 0226)
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark F 06.01 and F 18.00 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
Row
- 0190Loans and advances
Columns
- 0021Accumulated impairment
- 0022Accumulated negative changes in fair value due to credit risk on non-performing exposures
Information on performing and non-performing exposures (II) (F 18.00.b)
Rows
- 0120Non-financial corporations
- 0196Non-financial corporations
- 0226Non-financial corporations
Column
- 0130Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
sum({F_06.01,r0190,c0021,},{F_06.01,r0190,c0022,}) = {F_18.00.b,r0120,c0130,} + {F_18.00.b,r0196,c0130,} + {F_18.00.b,r0226,c0130,}Other rules on F 06.01
- Loans and advances must equal the sum of its three parts (v5014_m)Blocking
- Loans and advances, loans and advances subject to impairment must equal the sum of its two parts (v5264_m)Blocking
- Loans and advances, accumulated impairment must equal the sum of its two parts (v5265_m)Warning
- A matching-values check across breakdown of loans and advances other than held for trading, and information on performing and non-performing exposures (F 18.00.b, v5266_m)Blocking
- A calculation check across breakdown of loans and advances other than held for trading, and geographical breakdown of assets (F 20.04, v5351_m)Warning
- Loans and advances subject to impairment cannot be more than gross carrying amount (v5366_m)Blocking
- None of the 80 values it checks in breakdown of loans and advances other than held for trading can be negative (v5675_s)Warning
- Each of the 40 values it checks in breakdown of loans and advances other than held for trading cannot be more than zero (v5676_s)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.