The rule in plain words
For trading financial liabilities: if carrying amount is more than zero, these three added up must be more than zero:
- Level 3
- Level 1
- Level 2
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
If F_01.02: Trading financial liabilities > 0, then F_14.00: Trading financial liabilities, Level 3 + F_14.00: Trading financial liabilities, Level 1 + F_14.00: Trading financial liabilities, Level 2 > 0
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02The check applies only when its first part holds in your file. When it does, the second part must hold too: fix the second part, or correct the first.
- 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
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
if ({F_01.02,r0061,c0010,} > 0) then (sum({F_14.00,r0201,c0030,},{F_14.00,r0201,c0010,},{F_14.00,r0201,c0020,}) > 0) else TrueOther rules on F 01.02
- The sum of three columns cannot be more than other financial liabilities, carrying amount (v5097_m)Warning
- The sum of three columns cannot be more than debt securities issued, carrying amount (v5096_m)Warning
- Deposits: level 3 plus level 1 plus level 2 cannot be more than carrying amount (v5095_m)Warning
- Short positions: level 2 plus level 3 plus level 1 cannot be more than carrying amount (v5094_m)Warning
- Derivatives: level 3 plus level 1 plus level 2 cannot be more than carrying amount (v5093_m)Warning
- The sum of three columns cannot be more than trading financial liabilities, carrying amount (v5092_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
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.