The rule in plain words
None of the values it checks in breakdown of financial assets can be negative.
EBA checks it for four columns: unimpaired assets, impaired assets, carrying amount and assets under LOCOM. And for 20 rows, from equity instruments (0005) to non-trading financial assets measured at a cost-based method (0140). That makes 80 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.
Impaired assets: Other financial corporations >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 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
- 0005Equity instruments
- 0006of which: unquoted
- 0007of which: credit institutions
- 0008of which: other financial corporations
- 0009of which: non-financial corporations
- 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
- 0020Impaired assets
- 0050Carrying amount
- 0060of which: assets under LOCOM
A worked example
The first of its checks, with simple numbers.
Other financial corporations, impaired assets must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
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,r0110,c0020,} >= 0The next five:
{F_04.09,r0060,c0060,} >= 0{F_04.09,r0007,c0020,} >= 0{F_04.09,r0020,c0060,} >= 0{F_04.09,r0070,c0020,} >= 0{F_04.09,r0130,c0060,} >= 0And 74 more, the same formula for the other cells it covers.
Other rules on F 04.09
- Each of the 80 values it checks in breakdown of financial assets cannot be more than zero (v5667_s)Warning
- A balancing check across information on performing and non-performing exposures, and breakdown of financial assets (F 18.00.a, F 04.10, v5531_m)Warning
- Households: impaired gross carrying amount or nominal amount must equal impaired assets in F 04.09 plus impaired assets in F 04.10 minus assets under LOCOM (v5530_m)Warning
- Loans and advances: non-financial corporations: impaired gross carrying amount or nominal amount must equal impaired assets in F 04.09 plus impaired assets in F 04.10 minus assets under LOCOM (v5529_m)Warning
- Loans and advances: other financial corporations: impaired gross carrying amount or nominal amount must equal impaired assets in F 04.09 plus impaired assets in F 04.10 minus assets under LOCOM (v5528_m)Warning
- Loans and advances: credit institutions: impaired gross carrying amount or nominal amount must equal impaired assets in F 04.09 plus impaired assets in F 04.10 minus assets under LOCOM (v5527_m)Warning
- Loans and advances: general governments: impaired gross carrying amount or nominal amount must equal impaired assets in F 04.09 plus impaired assets in F 04.10 minus assets under LOCOM (v5526_m)Warning
- Loans and advances: central banks: impaired gross carrying amount or nominal amount must equal impaired assets in F 04.09 plus impaired assets in F 04.10 minus assets under LOCOM (v5525_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.