The rule in plain words

For central banks: accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal these five added up:

Purchased or originated credit-impaired instruments
Credit-impaired instruments (Stage 3)
Instruments without significant increase in credit risk since initial recognition (Stage 1)
Provision
Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)

How the Line4 Check report words itShow

Word for word as the report shows it when the rule fails.

F_18.00.B: Central banks, Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions = F_09.01.1: Central banks, Purchased or originated credit-impaired instruments + F_09.01.1: Central banks, Credit-impaired instruments (Stage 3) + F_09.01.1: Central banks, Instruments without significant increase in credit risk since initial recognition (Stage 1) + F_09.01.1: Central banks, Provision + F_09.01.1: Central banks, Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)

What to do if your filing fails it

01Open the templates 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03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.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 18.00 and F 09.01.1 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

Off-balance sheet exposures : loan commitments, financial guarantees and other commitments given (F 09.01.1)

Row

0030Central banks

Columns

0040Instruments without significant increase in credit risk since initial recognition (Stage 1)
0050Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)
0060Credit-impaired instruments (Stage 3)
0065Purchased or originated credit-impaired instruments
0110Provision

Information on performing and non-performing exposures (II) (F 18.00.b)

Row

0350Central banks

Column

0130Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions

A worked example

The first of its checks, with simple numbers.

Illustrative values

Central banks, purchased or originated credit-impaired instruments1,200

Central banks, credit-impaired instruments (Stage 3)800

Central banks, instruments without significant increase in credit risk since initial recognition (Stage 1)450

Central banks, provision300

Central banks, instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) (Stage 2)150

Together2,900

What the rule then expects

Central banks, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must then be 2,900.

2,900Passes

3,000Fails

A file that reports 2,900 passes. One that reports 3,000 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. Cells are written as {template, row, column, sheet}.

{F_18.00.b,r0350,c0130,} = sum({F_09.01.1,r0030,c0065,},{F_09.01.1,r0030,c0060,},{F_09.01.1,r0030,c0040,},{F_09.01.1,r0030,c0110,},{F_09.01.1,r0030,c0050,})

Every FINREP 9 rule, by template

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

Loan commitments given: central banks, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its five parts (EBA rule v5185_m)

The rule in plain words

What to do if your filing fails it

The cells it reads

A worked example

Other rules on F 09.01.1