The rule in plain words
Non-financial corporations cannot be negative.
EBA checks it for eleven rows, from on demand [call] and short notice [current account] (0010) to project finance loans (0130). That makes eleven 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.
Non-financial corporations: Trade receivables >= 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 05.01 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
- 0010On demand [call] and short notice [current account]
- 0020Credit card debt
- 0030Trade receivables
- 0040Finance leases
- 0050Reverse repurchase loans
- 0060Other term loans
- 0070Advances that are not loans
- 0080LOANS AND ADVANCES
- 0090of which: loans collateralized by immovable property
- 0100of which: other collateralized loans
- 0130of which: project finance loans
Column
- 0050Non-financial corporations
A worked example
The first of its checks, with simple numbers.
Trade receivables, non-financial corporations 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_05.01,r0030,c0050,} >= 0The next five:
{F_05.01,r0080,c0050,} >= 0{F_05.01,r0100,c0050,} >= 0{F_05.01,r0050,c0050,} >= 0{F_05.01,r0130,c0050,} >= 0{F_05.01,r0040,c0050,} >= 0And 5 more, the same formula for the other cells it covers.
Other rules on F 05.01
- Gross carrying amount cannot be negative (v5672_s)Warning
- Central banks cannot be negative (v5674_s)Warning
- Households cannot be negative (v5671_s)Warning
- None of the 30 values it checks in breakdown of non-trading loans and advances can be negative (v5670_s)Warning
- Loans and advances, gross carrying amount in F 05.01 must equal a calculation over four cells (v5350_m)Warning
- Loans and advances, central banks cannot be less than a calculation over four columns (v6054_m)Warning
- Loans and advances, general governments must equal a calculation over four columns (v6055_m)Warning
- Loans and advances, credit institutions cannot be less than a calculation over four columns (v6056_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.