The rule in plain words
Loans and advances, accumulated negative changes in fair value due to credit risk on non-performing exposures must equal non-financial corporations, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions.
The headline gives only the kind of check and the template, because the rule is too long to say in a headline. The plain words above say all of it.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_06.01: Loans and advances, Accumulated negative changes in fair value due to credit risk on non-performing exposures = F_18.00.B: Non-financial corporations, Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 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 06.01 and F 18.00 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
- 0190Loans and advances
Column
- 0022Accumulated negative changes in fair value due to credit risk on non-performing exposures
Information on performing and non-performing exposures (II) (F 18.00.b)
Row
- 0226Non-financial corporations
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.
Non-financial corporations, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must then be 1,200.
A file that reports 1,200 passes. One that reports 1,300 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_06.01,r0190,c0022,} = {F_18.00.b,r0226,c0130,}Other rules on F 06.01
- Loans and advances, accumulated impairment must equal the sum of its two parts (v5265_m)Warning
- Loans and advances, loans and advances subject to impairment must equal the sum of its two parts (v5264_m)Blocking
- A calculation check across breakdown of loans and advances other than held for trading, and geographical breakdown of assets (F 20.04, v5351_m)Warning
- Loans and advances subject to impairment cannot be more than gross carrying amount (v5366_m)Blocking
- A balancing check across breakdown of loans and advances other than held for trading, and information on performing and non-performing exposures (F 18.00.b, v5015_m)Warning
- Loans and advances must equal the sum of its three parts (v5014_m)Blocking
- None of the 80 values it checks in breakdown of loans and advances other than held for trading can be negative (v5675_s)Warning
- Each of the 40 values it checks in breakdown of loans and advances other than held for trading cannot be more than zero (v5676_s)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.