The rule in plain words
For trading financial liabilities: these three added up cannot be more than carrying amount:
- Level 3
- Level 2
- Level 1
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_14.00: Trading financial liabilities, Level 3 + F_14.00: Trading financial liabilities, Level 2 + F_14.00: Trading financial liabilities, Level 1 <= F_01.02: Trading financial liabilities
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 01.02 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: liabilities (F 01.02)
Row
- 0061Trading financial liabilities
Column
- 0010Carrying amount
Fair value hierarchy: financial instruments at fair value (F 14.00)
Row
- 0201Trading financial liabilities
Columns
- 0010Level 1
- 0020Level 2
- 0030Level 3
A worked example
The first of its checks, with simple numbers.
Trading financial liabilities, 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,r0201,c0030,},{F_14.00,r0201,c0020,},{F_14.00,r0201,c0010,}) <= {F_01.02,r0061,c0010,}Other rules on F 01.02
- Derivatives: level 3 plus level 1 plus level 2 cannot be more than carrying amount (v5093_m)Warning
- Short positions: level 2 plus level 3 plus level 1 cannot be more than carrying amount (v5094_m)Warning
- Deposits: level 3 plus level 1 plus level 2 cannot be more than carrying amount (v5095_m)Warning
- The sum of three columns cannot be more than debt securities issued, carrying amount (v5096_m)Warning
- The sum of three columns cannot be more than other financial liabilities, carrying amount (v5097_m)Warning
- If financial liabilities designated at fair value through profit or loss, carrying amount is more than zero, the sum of three columns must be more than zero (v4967_m)Warning
- If financial liabilities held for trading, carrying amount is more than zero, the sum of three columns must be more than zero (v4966_m)Warning
- If trading financial liabilities, carrying amount is more than zero, the sum of three columns must be more than zero (v5377_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.