The rule in plain words
For loans and advances: these three added up cannot be more than carrying amount:
- Level 2
- Level 1
- Level 3
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_14.00: Loans and advances, Level 2 + F_14.00: Loans and advances, Level 1 + F_14.00: Loans and advances, Level 3 <= F_01.01: Loans and advances
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 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 01.01 and F 14.00 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
Balance sheet statement: assets (F 01.01)
Row
- 0095Loans and advances
Column
- 0010Carrying amount
Fair value hierarchy: financial instruments at fair value (F 14.00)
Row
- 0055Loans and advances
Columns
- 0010Level 1
- 0020Level 2
- 0030Level 3
A worked example
The first of its checks, with simple numbers.
Loans and advances, carrying amount must then be at least 2,450.
A file that reports 2,450 passes. One that reports 2,350 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
sum({F_14.00,r0055,c0020,},{F_14.00,r0055,c0010,},{F_14.00,r0055,c0030,}) <= {F_01.01,r0095,c0010,}Other rules on F 01.01
- Debt securities: level 2 plus level 1 plus level 3 cannot be more than carrying amount (v5074_m)Warning
- Non-trading financial assets mandatorily at fair value through profit or loss, carrying amount must equal the sum of its three parts (v5076_m)Warning
- Equity instruments: level 1 plus level 2 plus level 3 cannot be more than carrying amount (v5073_m)Warning
- Non-trading financial assets mandatorily at fair value through profit or loss: equity instruments: carrying amount must equal level 3 plus level 1 plus level 2 (v5077_m)Warning
- Derivatives: level 2 plus level 1 plus level 3 cannot be more than carrying amount (v5072_m)Warning
- Debt securities: carrying amount must equal level 1 plus level 2 plus level 3 (v5078_m)Warning
- The sum of three columns cannot be more than trading financial assets, carrying amount (v5071_m)Warning
- Loans and advances: carrying amount must equal level 3 plus level 2 plus level 1 (v5079_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.