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 negative changes in fair value due to credit risk on non-performing exposures in F 04.02.1 plus non-financial corporations, 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_06.01: Loans and advances, Accumulated negative changes in fair value due to credit risk on non-performing exposures = F_04.02.1: Non-financial corporations, Accumulated negative changes in fair value due to credit risk on non-performing exposures + F_04.02.2: Non-financial corporations, 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.
- 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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 06.01 and F 04.02.1 or F 04.02.2 as reported.
- 06This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Row
- 0160Non-financial corporations
Column
- 0020Accumulated negative changes in fair value due to credit risk on non-performing exposures
Row
- 0170Non-financial corporations
Column
- 0020Accumulated negative changes in fair value due to credit risk on non-performing exposures
Row
- 0190Loans and advances
Column
- 0022Accumulated negative changes in fair value due to credit risk on non-performing exposures
A worked example
The first of its checks, with simple numbers.
Loans and advances, accumulated negative changes in fair value due to credit risk on non-performing exposures must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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_04.02.1,r0160,c0020,} + {F_04.02.2,r0170,c0020,}Other rules on F 04.02.1
- Loans and advances, gross carrying amount must equal a calculation over twelve cells (v5532_m)Warning
- Carrying amount cannot be negative (v5654_s)Warning
- Accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5655_s)Blocking
- A total-and-parts check across information on performing and non-performing exposures, and breakdown of financial assets (F 18.00.b, F 04.02.2, row 0231, v5263_m)Blocking
- Households, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its two parts (v5262_m)Blocking
- Loans and advances: non-financial corporations, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its two parts (F 18.00.b, row 0226, v5261_m)Blocking
- Loans and advances: other financial corporations, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its two parts (v5260_m)Blocking
- Loans and advances: credit institutions, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its two parts (v5259_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.