The rule in plain words
Carrying amount minus assets under LOCOM, carrying amount must equal these seven worked out:
- Unimpaired assets
- Minus assets under LOCOM, unimpaired assets
- Impaired assets
- Minus assets under LOCOM, impaired assets
- Specific allowances for credit risk
- General allowances for credit risk affecting carrying amount
- General allowances for banking risk affecting carrying amount
EBA checks it for 15 rows, from debt securities (0010) to non-trading financial assets measured at a cost-based method (0140). That makes 15 checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Credit institutions, Carrying amount - Credit institutions, Carrying amount, of which: assets under LOCOM = Credit institutions, Unimpaired assets - Credit institutions, Unimpaired assets, of which: assets under LOCOM + Credit institutions, Impaired assets - Credit institutions, Impaired assets, of which: assets under LOCOM + Credit institutions, Specific allowances for credit risk + Credit institutions, General allowances for credit risk affecting carrying amount + Credit institutions, General allowances for banking risk affecting carrying amount
What to do if your filing fails it
- 01Open the template 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 04.09 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
Rows
- 0010Debt securities
- 0020Central banks
- 0030General governments
- 0040Credit institutions
- 0050Other financial corporations
- 0060Non-financial corporations
- 0070Loans and advances
- 0080Central banks
- 0090General governments
- 0100Credit institutions
- 0110Other financial corporations
- 0120Non-financial corporations
- 0125Of which: Small and Medium-sized Enterprises
- 0130Households
- 0140NON-TRADING FINANCIAL ASSETS MEASURED AT A COST-BASED METHOD
Columns
- 0010Unimpaired assets
- 0015of which: assets under LOCOM
- 0020Impaired assets
- 0025of which: assets under LOCOM
- 0030Specific allowances for credit risk
- 0041General allowances for credit risk affecting carrying amount
- 0045General allowances for banking risk affecting carrying amount
- 0050Carrying amount
- 0060of which: assets under LOCOM
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_04.09,r0100,c0050,} - {F_04.09,r0100,c0060,} = {F_04.09,r0100,c0010,} - {F_04.09,r0100,c0015,} + {F_04.09,r0100,c0020,} - {F_04.09,r0100,c0025,} + {F_04.09,r0100,c0030,} + {F_04.09,r0100,c0041,} + {F_04.09,r0100,c0045,}The next five:
{F_04.09,r0120,c0050,} - {F_04.09,r0120,c0060,} = {F_04.09,r0120,c0010,} - {F_04.09,r0120,c0015,} + {F_04.09,r0120,c0020,} - {F_04.09,r0120,c0025,} + {F_04.09,r0120,c0030,} + {F_04.09,r0120,c0041,} + {F_04.09,r0120,c0045,}{F_04.09,r0140,c0050,} - {F_04.09,r0140,c0060,} = {F_04.09,r0140,c0010,} - {F_04.09,r0140,c0015,} + {F_04.09,r0140,c0020,} - {F_04.09,r0140,c0025,} + {F_04.09,r0140,c0030,} + {F_04.09,r0140,c0041,} + {F_04.09,r0140,c0045,}{F_04.09,r0020,c0050,} - {F_04.09,r0020,c0060,} = {F_04.09,r0020,c0010,} - {F_04.09,r0020,c0015,} + {F_04.09,r0020,c0020,} - {F_04.09,r0020,c0025,} + {F_04.09,r0020,c0030,} + {F_04.09,r0020,c0041,} + {F_04.09,r0020,c0045,}{F_04.09,r0080,c0050,} - {F_04.09,r0080,c0060,} = {F_04.09,r0080,c0010,} - {F_04.09,r0080,c0015,} + {F_04.09,r0080,c0020,} - {F_04.09,r0080,c0025,} + {F_04.09,r0080,c0030,} + {F_04.09,r0080,c0041,} + {F_04.09,r0080,c0045,}{F_04.09,r0090,c0050,} - {F_04.09,r0090,c0060,} = {F_04.09,r0090,c0010,} - {F_04.09,r0090,c0015,} + {F_04.09,r0090,c0020,} - {F_04.09,r0090,c0025,} + {F_04.09,r0090,c0030,} + {F_04.09,r0090,c0041,} + {F_04.09,r0090,c0045,}And 9 more, the same formula for the other cells it covers.
Other rules on F 04.09
- Assets under LOCOM, carrying amount must equal the sum of its three parts (v5427_m)Warning
- Unimpaired assets must equal assets under LOCOM (v5428_m)Warning
- Impaired assets must equal assets under LOCOM (v5429_m)Warning
- Debt instruments at cost or at amortised cost: debt securities, gross carrying amount or nominal amount must equal a calculation over six cells (v5434_m)Warning
- Debt securities: central banks, gross carrying amount or nominal amount must equal a calculation over six cells (row 0020, v5435_m)Warning
- Debt securities: general governments, gross carrying amount or nominal amount must equal a calculation over six cells (row 0030, v5436_m)Warning
- Debt securities: credit institutions, gross carrying amount or nominal amount must equal a calculation over six cells (row 0040, v5437_m)Warning
- Debt securities: other financial corporations, gross carrying amount or nominal amount must equal a calculation over six cells (row 0050, v5438_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.