The rule in plain words
For debt securities: gross carrying amount or nominal amount must equal these four worked out:
- Carrying amount in F 04.02.1
- Minus accumulated negative changes in fair value due to credit risk on non-performing exposures in F 04.02.1
- Carrying amount in F 04.02.2
- Minus accumulated negative changes in fair value due to credit risk on non-performing exposures in F 04.02.2
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_18.00.A: Debt securities, Gross carrying amount/Nominal amount = F_04.02.1: Debt securities, Carrying amount - F_04.02.1: Debt securities, Accumulated negative changes in fair value due to credit risk on non-performing exposures + F_04.02.2: Debt securities, Carrying amount - F_04.02.2: Debt securities, Accumulated negative changes in fair value due to credit risk on non-performing exposures
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 18.00 and F 04.02.1 or F 04.02.2 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Row
- 0050Debt securities
Columns
- 0010Carrying amount
- 0020Accumulated negative changes in fair value due to credit risk on non-performing exposures
Row
- 0060Debt securities
Columns
- 0010Carrying amount
- 0020Accumulated negative changes in fair value due to credit risk on non-performing exposures
Information on performing and non-performing exposures (I) (F 18.00.a)
Row
- 0211Debt securities
Column
- 0010Gross carrying amount/Nominal amount
A worked example
The first of its checks, with simple numbers.
Debt securities, gross carrying amount or nominal amount must then be 550.
A file that reports 550 passes. One that reports 650 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}.
{F_18.00.a,r0211,c0010,} = {F_04.02.1,r0050,c0010,} - {F_04.02.1,r0050,c0020,} + {F_04.02.2,r0060,c0010,} - {F_04.02.2,r0060,c0020,}Other rules on F 04.02.1
- Debt securities: central banks, gross carrying amount or nominal amount must equal a calculation over four cells (v5171_m)Blocking
- Debt securities: general governments, gross carrying amount or nominal amount must equal a calculation over four cells (v5172_m)Blocking
- Debt securities: credit institutions, gross carrying amount or nominal amount must equal a calculation over four cells (v5173_m)Blocking
- Debt securities: other financial corporations, gross carrying amount or nominal amount must equal a calculation over four cells (v5174_m)Blocking
- Debt securities: non-financial corporations, gross carrying amount or nominal amount must equal a calculation over four cells (v5175_m)Blocking
- Loans and advances, gross carrying amount or nominal amount must equal a calculation over four cells (v5176_m)Blocking
- Loans and advances: central banks, gross carrying amount or nominal amount must equal a calculation over four cells (v5177_m)Blocking
- Loans and advances: general governments, gross carrying amount or nominal amount must equal a calculation over four cells (v5178_m)Blocking
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.