The rule in plain words
None of the values it checks in financial assets subject to impairment that are past due can be negative.
EBA checks it for twelve columns, from ≤ 30 days (0010) to > 90 days (0120). And for 26 rows, from debt securities (0060) to project finance loans (0310). That makes 312 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.
> 30 days ≤ 90 days: General governments >= 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 07.01 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
Financial assets subject to impairment that are past due (F 07.01)
Rows
- 0060Debt securities
- 0070Central banks
- 0080General governments
- 0090Credit institutions
- 0100Other financial corporations
- 0110Non-financial corporations
- 0120Loans and advances
- 0130Central banks
- 0140General governments
- 0150Credit institutions
- 0160Other financial corporations
- 0170Non-financial corporations
- 0180Households
- 0190TOTAL
- 0200On demand [call] and short notice [current account]
- 0210Credit card debt
- 0220Trade receivables
- 0230Finance leases
- 0240Reverse repurchase loans
- 0250Other term loans
- 0260Advances that are not loans
- 0270of which: loans collateralized by immovable property
- 0280of which: other collateralized loans
- 0290of which: credit for consumption
- 0300of which: lending for house purchase
- 0310of which: project finance loans
Columns
- 0010≤ 30 days
- 0020> 30 days ≤ 90 days
- 0030> 90 days
- 0040≤ 30 days
- 0050> 30 days ≤ 90 days
- 0060> 90 days
- 0070≤ 30 days
- 0080> 30 days ≤ 90 days
- 0090> 90 days
- 0100≤ 30 days
- 0110> 30 days ≤ 90 days
- 0120> 90 days
A worked example
The first of its checks, with simple numbers.
General governments, > 30 days ≤ 90 days 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_07.01,r0080,c0020,} >= 0The next five:
{F_07.01,r0280,c0100,} >= 0{F_07.01,r0260,c0040,} >= 0{F_07.01,r0210,c0060,} >= 0{F_07.01,r0210,c0090,} >= 0{F_07.01,r0090,c0020,} >= 0And 306 more, the same formula for the other cells it covers.
Other rules on F 07.01
- Assets without significant increase in credit risk since initial recognition (Stage 1): loans and advances cannot be less than the sum of two rows (v0824_m)Warning
- Purchased or originated credit-impaired financial assets: loans and advances cannot be less than the sum of two rows (v0823_m)Warning
- Loans and advances cannot be less than project finance loans (v0822_m)Warning
- Loans and advances must equal the sum of its seven parts (v0821_m)Warning
- Debt securities must equal the sum of its five parts (v0819_m)Warning
- Total must equal debt securities plus loans and advances (v903638_h)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.