The rule in plain words
Accumulated negatives change in fair value due to credit risk on non-performing commitments cannot be negative.
EBA checks it for three rows: non-performing loan commitments given, non-performing financial guarantees given and non-performing other commitments given. That makes three 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.
Accumulated negatives change in fair value due to credit risk on non-performing commitments: of which: non-performing >= 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 09.01.1 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
Off-balance sheet exposures : loan commitments, financial guarantees and other commitments given (F 09.01.1)
Rows
- 0021of which: non-performing
- 0101of which: non-performing
- 0181of which: non-performing
Column
- 0130Accumulated negatives change in fair value due to credit risk on non-performing commitments
A worked example
The first of its checks, with simple numbers.
Non-performing loan commitments given, accumulated negatives change in fair value due to credit risk on non-performing commitments 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_09.01.1,r0021,c0130,} >= 0The next two:
{F_09.01.1,r0101,c0130,} >= 0{F_09.01.1,r0181,c0130,} >= 0Other rules on F 09.01.1
- Nominal amount cannot be negative (v5680_s)Warning
- None of the 216 values it checks in off-balance sheet exposures can be negative (v5679_s)Warning
- Other commitments given cannot be less than non-performing other commitments given (v5365_m)Warning
- Financial guarantees given cannot be less than non-performing financial guarantees given (v5364_m)Warning
- Loan commitments given cannot be less than non-performing loan commitments given (v5363_m)Warning
- Commitments and financial guarantees given (Stage 1), closing balance must equal the sum of its three parts (v6047_m)Warning
- Commitments and financial guarantees given (Stage 2), closing balance must equal the sum of its three parts (v6048_m)Warning
- Commitments and financial guarantees given (Stage 3), closing balance must equal the sum of its three parts (v6049_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.