The rule in plain words
Carrying amount must equal these eight added up:
- Assets without significant increase in credit risk since initial recognition (Stage 1), gross carrying amount
- Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2), gross carrying amount
- Credit-impaired assets (Stage 3), gross carrying amount
- Purchased or originated credit-impaired financial assets, gross carrying amount
- Assets without significant increase in credit risk since initial recognition (Stage 1), accumulated impairment
- Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2), accumulated impairment
- Credit-impaired assets (Stage 3), accumulated impairment
- Purchased or originated credit-impaired financial assets, accumulated impairment
EBA checks it for 15 rows, from debt securities (0010) to financial assets at amortised cost (0140). That makes 15 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.
Credit institutions, Carrying amount = Credit institutions, Gross carrying amount, assets without significant increase in credit risk since initial recognition (Stage 1) + Credit institutions, Gross carrying amount, assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) + Credit institutions, Gross carrying amount, credit-impaired assets (Stage 3) + Credit institutions, Gross carrying amount, purchased or originated credit-impaired financial assets + Credit institutions, Accumulated impairment, assets without significant increase in credit risk since initial recognition (Stage 1) + Credit institutions, Accumulated impairment, assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) + Credit institutions, Accumulated impairment, credit-impaired assets (Stage 3) + Credit institutions, Accumulated impairment, purchased or originated credit-impaired financial assets
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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 04.04.1 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
Breakdown of financial assets by instrument and by counterparty sector: financial assets at amortised cost (F 04.04.1)
Rows
- 0010Debt securities
- 0020Central banks
- 0030General governments
- 0040Credit institutions
- 0050Other financial corporations
- 0060Non-financial corporations
- 0070Loans and advances
- 0080Central banks
- 0090General governments
- 0100Credit institutions
- 0110Other financial corporations
- 0120Non-financial corporations
- 0125Of which: Small and Medium-sized Enterprises
- 0130Households
- 0140FINANCIAL ASSETS AT AMORTISED COST
Columns
- 0010Carrying amount
- 0015Assets without significant increase in credit risk since initial recognition (Stage 1)
- 0030Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0040Credit-impaired assets (Stage 3)
- 0041Purchased or originated credit-impaired financial assets
- 0050Assets without significant increase in credit risk since initial recognition (Stage 1)
- 0060Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0070Credit-impaired assets (Stage 3)
- 0071Purchased or originated credit-impaired financial assets
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}.
{F_04.04.1,r0100,c0010,} = {F_04.04.1,r0100,c0015,} + {F_04.04.1,r0100,c0030,} + {F_04.04.1,r0100,c0040,} + {F_04.04.1,r0100,c0041,} + {F_04.04.1,r0100,c0050,} + {F_04.04.1,r0100,c0060,} + {F_04.04.1,r0100,c0070,} + {F_04.04.1,r0100,c0071,}The next five:
{F_04.04.1,r0040,c0010,} = {F_04.04.1,r0040,c0015,} + {F_04.04.1,r0040,c0030,} + {F_04.04.1,r0040,c0040,} + {F_04.04.1,r0040,c0041,} + {F_04.04.1,r0040,c0050,} + {F_04.04.1,r0040,c0060,} + {F_04.04.1,r0040,c0070,} + {F_04.04.1,r0040,c0071,}{F_04.04.1,r0110,c0010,} = {F_04.04.1,r0110,c0015,} + {F_04.04.1,r0110,c0030,} + {F_04.04.1,r0110,c0040,} + {F_04.04.1,r0110,c0041,} + {F_04.04.1,r0110,c0050,} + {F_04.04.1,r0110,c0060,} + {F_04.04.1,r0110,c0070,} + {F_04.04.1,r0110,c0071,}{F_04.04.1,r0125,c0010,} = {F_04.04.1,r0125,c0015,} + {F_04.04.1,r0125,c0030,} + {F_04.04.1,r0125,c0040,} + {F_04.04.1,r0125,c0041,} + {F_04.04.1,r0125,c0050,} + {F_04.04.1,r0125,c0060,} + {F_04.04.1,r0125,c0070,} + {F_04.04.1,r0125,c0071,}{F_04.04.1,r0130,c0010,} = {F_04.04.1,r0130,c0015,} + {F_04.04.1,r0130,c0030,} + {F_04.04.1,r0130,c0040,} + {F_04.04.1,r0130,c0041,} + {F_04.04.1,r0130,c0050,} + {F_04.04.1,r0130,c0060,} + {F_04.04.1,r0130,c0070,} + {F_04.04.1,r0130,c0071,}{F_04.04.1,r0010,c0010,} = {F_04.04.1,r0010,c0015,} + {F_04.04.1,r0010,c0030,} + {F_04.04.1,r0010,c0040,} + {F_04.04.1,r0010,c0041,} + {F_04.04.1,r0010,c0050,} + {F_04.04.1,r0010,c0060,} + {F_04.04.1,r0010,c0070,} + {F_04.04.1,r0010,c0071,}And 9 more, the same formula for the other cells it covers.
Other rules on F 04.04.1
- Debt securities must equal the sum of its five parts (v5030_m)Warning
- Debt instruments at cost or at amortised cost: debt securities, gross carrying amount or nominal amount must equal the sum of its four parts (v5155_m)Warning
- Debt instruments at cost or at amortised cost: debt securities, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (v5222_m)Warning
- Debt securities: central banks, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (row 0020, v5223_m)Warning
- Debt securities: general governments, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (row 0030, v5224_m)Warning
- Debt securities: credit institutions, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (row 0040, v5225_m)Warning
- Debt securities: other financial corporations, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (row 0050, v5226_m)Warning
- Debt securities: non-financial corporations, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its four parts (row 0060, v5227_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.