The rule in plain words
Loans and advances, loans and advances subject to impairment must equal these eight added up, all for non-financial corporations:
- Assets without significant increase in credit risk since initial recognition (Stage 1) in F 04.03.1
- Credit-impaired assets (Stage 3) in F 04.03.1
- Purchased or originated credit-impaired financial assets in F 04.03.1
- Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) in F 04.03.1
- Assets without significant increase in credit risk since initial recognition (Stage 1) in F 04.04.1
- Purchased or originated credit-impaired financial assets in F 04.04.1
- Credit-impaired assets (Stage 3) in F 04.04.1
- Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) in F 04.04.1
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, of which: loans and advances subject to impairment = F_04.03.1: Non-financial corporations, Assets without significant increase in credit risk since initial recognition (Stage 1) + F_04.03.1: Non-financial corporations, Credit-impaired assets (Stage 3) + F_04.03.1: Non-financial corporations, Purchased or originated credit-impaired financial assets + F_04.03.1: Non-financial corporations, Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) + F_04.04.1: Non-financial corporations, Assets without significant increase in credit risk since initial recognition (Stage 1) + F_04.04.1: Non-financial corporations, Purchased or originated credit-impaired financial assets + F_04.04.1: Non-financial corporations, Credit-impaired assets (Stage 3) + F_04.04.1: Non-financial corporations, Assets with significant increase in credit risk since initial recognition but not credit-impaired (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- 03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.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 06.01 and F 04.03.1 or F 04.04.1 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
Row
- 0160Non-financial corporations
Columns
- 0015Assets without significant increase in credit risk since initial recognition (Stage 1)
- 0030Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0040Credit-impaired assets (Stage 3)
- 0041Purchased or originated credit-impaired financial assets
Breakdown of financial assets by instrument and by counterparty sector: financial assets at amortised cost (F 04.04.1)
Row
- 0120Non-financial corporations
Columns
- 0015Assets without significant increase in credit risk since initial recognition (Stage 1)
- 0030Assets with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2)
- 0040Credit-impaired assets (Stage 3)
- 0041Purchased or originated credit-impaired financial assets
Row
- 0190Loans and advances
Column
- 0011of which: loans and advances subject to impairment
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{F_06.01,r0190,c0011,} = sum({F_04.03.1,r0160,c0015,},{F_04.03.1,r0160,c0040,},{F_04.03.1,r0160,c0041,},{F_04.03.1,r0160,c0030,}) + sum({F_04.04.1,r0120,c0015,},{F_04.04.1,r0120,c0041,},{F_04.04.1,r0120,c0040,},{F_04.04.1,r0120,c0030,})Other rules on F 04.03.1
- Loans and advances, accumulated impairment must equal the sum of its eight parts (v5534_m)Warning
- Loans and advances: non-financial corporations: > 30 days ≤ 90 days plus ≤ 30 days plus > 90 days cannot be more than the sum of four cells (v5424_m)Warning
- Loans and advances: other financial corporations: ≤ 30 days plus > 30 days ≤ 90 days plus > 90 days cannot be more than the sum of four cells (v5423_m)Warning
- Credit institutions: > 90 days plus > 30 days ≤ 90 days plus ≤ 30 days cannot be more than the sum of four cells (v5422_m)Warning
- Loans and advances: general governments: ≤ 30 days plus > 30 days ≤ 90 days plus > 90 days cannot be more than the sum of four cells (v5421_m)Warning
- Central banks: > 90 days plus ≤ 30 days plus > 30 days ≤ 90 days cannot be more than the sum of four cells (v5420_m)Warning
- Credit-impaired assets (Stage 3): households: > 30 days ≤ 90 days plus > 90 days plus ≤ 30 days cannot be more than the sum of four cells (v5419_m)Warning
- Credit-impaired assets (Stage 3): loans and advances: > 30 days ≤ 90 days plus ≤ 30 days plus > 90 days cannot be more than the sum of four cells (v5418_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.