Line4

2 min readBlockingEBA reporting framework 4.2Updated 10 November 2026

Total allowance for debt instruments must equal the sum of its four parts (EBA rule v5051_m)

A blocking check in the financial reporting return (FINREP 9), on template F 12.01.a, movements in allowances and provisions for credit losses (I).

Check your file against this ruleWhat to do if it fails

The rule in plain words

Total allowance for debt instruments must equal these four added up:

  • Allowances for financial assets without increase in credit risk since initial recognition (Stage 1)
  • Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
  • Allowances for credit-impaired debt instruments (Stage 3)
  • Allowances for purchased or originated credit-impaired financial assets

EBA checks it for eleven columns, from opening balance (0010) to gains or losses on derecognition of debt instruments (0125). That makes eleven checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

Opening balance: Total allowance for debt instruments = Allowances for financial assets without increase in credit risk since initial recognition (Stage 1) + Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) + Allowances for credit-impaired debt instruments (Stage 3) + Allowances for purchased or originated credit-impaired financial assets

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark F 12.01 as reported.
  6. 06This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.

The cells it reads

Movements in allowances and provisions for credit losses (I) (F 12.01.a)

Rows

  • 0010Allowances for financial assets without increase in credit risk since initial recognition (Stage 1)
  • 0180Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
  • 0360Allowances for credit-impaired debt instruments (Stage 3)
  • 0520Total allowance for debt instruments
  • 0600Allowances for purchased or originated credit-impaired financial assets

Columns

  • 0010Opening balance
  • 0030Decrease due to derecognition repayments and disposals
  • 0040Changes due to change in credit risk (net)
  • 0050Changes due to modifications without derecognition (net)
  • 0070Changes due to update in the institution's methodology for estimation (net)
  • 0080Decrease in allowance account due to write-offs
  • 0090Other adjustments
  • 0100Closing balance
  • 0110Recoveries of previously written-off amounts recorded directly to the statement of profit or loss
  • 0120Amounts written-off directly to the statement of profit or loss
  • 0125Gains or losses on derecognition of debt instruments

A worked example

The first of its checks, with simple numbers.

Illustrative values
Allowances for financial assets without increase in credit risk since initial recognition (Stage 1)1,200
Allowances for debt instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)800
Allowances for credit-impaired debt instruments (Stage 3)450
Allowances for purchased or originated credit-impaired financial assets300
Together2,750
What the rule then expects

Total allowance for debt instruments must then be 2,750.

2,750Passes
2,850Fails

A file that reports 2,750 passes. One that reports 2,850 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_12.01.a,r0520,c0010,} = {F_12.01.a,r0010,c0010,} + {F_12.01.a,r0180,c0010,} + {F_12.01.a,r0360,c0010,} + {F_12.01.a,r0600,c0010,}

The next five:

{F_12.01.a,r0520,c0030,} = {F_12.01.a,r0010,c0030,} + {F_12.01.a,r0180,c0030,} + {F_12.01.a,r0360,c0030,} + {F_12.01.a,r0600,c0030,}{F_12.01.a,r0520,c0040,} = {F_12.01.a,r0010,c0040,} + {F_12.01.a,r0180,c0040,} + {F_12.01.a,r0360,c0040,} + {F_12.01.a,r0600,c0040,}{F_12.01.a,r0520,c0050,} = {F_12.01.a,r0010,c0050,} + {F_12.01.a,r0180,c0050,} + {F_12.01.a,r0360,c0050,} + {F_12.01.a,r0600,c0050,}{F_12.01.a,r0520,c0070,} = {F_12.01.a,r0010,c0070,} + {F_12.01.a,r0180,c0070,} + {F_12.01.a,r0360,c0070,} + {F_12.01.a,r0600,c0070,}{F_12.01.a,r0520,c0080,} = {F_12.01.a,r0010,c0080,} + {F_12.01.a,r0180,c0080,} + {F_12.01.a,r0360,c0080,} + {F_12.01.a,r0600,c0080,}

And 5 more, the same formula for the other cells it covers.

Every FINREP 9 rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.